SINGAPORE (Nov 14): ComfortDelgro’s share price fell more than 12% over the past month, in what Maybank Kim Eng considers an “overreaction” to the announcement of a 4.2% fare cut on Oct 27 from lower energy prices.
Maybank Kim Eng’s analysts Derrick Heng and John Cheong noted that the Public Transport Council has guided for an $8.9 million impact on SBS Transit’s rail operations, which is “manageable”.
They also added that the “cost relief from a broader deflationary environment should mitigate the downside to earnings.”
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