SINGAPORE (Sept 29): Maybank Kim Eng is upgrading its call on land transport operator ComfortDelgro (CDG) to “buy” from “hold” while raising its price target on the stock to from $2.25 to $2.40, which implies 16.3 times FY18E earnings per share (EPS).

In a Thursday report, analyst John Cheong speculates that the downside for CDG’s taxi operations has been largely priced in after its 12 million share price correction of 28%.

The analyst has cut his EPS estimates for the group by 1-6% to factor in further taxi weakness, and believes this is captured in his research assumption of a 12-15% fleet size reduction per annum.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook