Maybank Kim Eng analyst Kareen Chan has maintained “buy” on transport operator ComfortDelGro (CDG) with a higher target price of $1.88 from $1.76 previously, as she estimates recovery in ridership for taxis and public transport will recover in 2021.

Chan has also upped CDG’s earnings per share (EPS) by 23% to account for operating leverage amid a recovery in ridership.

“CDG offers exposure to domestic transport recovery, which should see a faster pace of turnaround compared to aviation. Downside risks include further impairment of UK businesses due to the worsening Covid-19 situation,” she says in a report dated Jan 11.

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