The taxi business here will see gradual improvement once Phase 3 of Singapore’s re-opening begins, says RHB analyst Shekhar Jaiswal in an Oct 7 note. Jaiswal is maintaining his “buy” call on the transport operator, with a target price of $1.70.

“ComfortDelGro should benefit from gradual improvements in public transport ridership and increase in its taxi utilisation, as Singapore enters Phase 3 of re-opening the economy. Continued government support from extensions to the Jobs Support Scheme and Point-to-Point (P2P) Support Package to early-2021 should provide strong cost support for its Singapore operations. Given expectations of strong profit growth and an improvement in ROE for 2021F, we believe current valuations remain attractive,” writes Jaiswal.

See: ComfortDelGro sinks into the red with $6 mil loss, skips interim dividend

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)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook