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RHB keeps 'buy' on ComfortDelGro as taxi drivers get more support

Felicia Tan
Felicia Tan6/22/2022 12:31 PM GMT+08  • 3 min read
RHB keeps 'buy' on ComfortDelGro as taxi drivers get more support
RHB's Shekhar Jaiswal has kept his target price of $1.77, which implies an FY2023 P/E of 17.2x. Photo: CDG
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RHB Group Research analyst Shekhar Jaiswal is keeping his “buy” recommendation on ComfortDelGro (CDG) as he sees the transport operator being “well-placed” to maintain its earnings recovery over the next few quarters.

The earnings recovery comes as CDG’s Singapore units gradually return to normalcy following the negative impact that stemmed from the Covid-19 pandemic.

In addition, the one-off government support of $150 for taxi hirers to offset higher fuel prices, coupled with the support measures from CDG itself, should enable the group to sustain a gradual recovery in taxi earnings, as it should strengthen the sustainability of taxi hirers’ earnings, the analyst says.

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