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Transport sector gets an 'overweight' as contracts are finalised

Zavier Ong
Zavier Ong8/15/2016 11:18 AM GMT+08  • 2 min read
Transport sector gets an 'overweight' as contracts are finalised
SINGAPORE (Aug 15): RHB is maintaining its “overweight” rating for the local land transport sector, with a “buy” call for ComfortDelGro (CD), along with a target price of $3.25.
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SINGAPORE (Aug 15): RHB is maintaining its “overweight” rating for the local land transport sector, with a “buy” call for ComfortDelGro (CD), along with a target price of $3.25.

This comes as incumbent operators SBS Transit and SMRT finalised longer-than-expected contracts with the Land Transport Authority (LTA) to operate bus services for tenures averaging seven and six years respectively.

SBS Transit will receive $5.3 billion in fees to run 196 bus services while SMRT will get $1.9 billion in fees to operate 77 bus services.

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