SINGAPORE (Dec 1): DMG has upgraded the land transport sector to “overweight” amid expectations of increased pace of reforms.

The research house is upgrading ComfortDelGro to “buy” with $3.60 target price and SMRT to “neutral” with $1.60 target price.

DMG expects the sale of non-Bus Service Enhancement Programme (BSEP) buses at a 10% discount to book value to translate into a cash inflow of $710 million for ComfortDelGro in FY16 and $207 million for SMRT in FY17.

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