ComfortDelGro (CDG)

Blue chips under pressure

SINGAPORE (Aug 2): Quarterly momentum has broken down and has weakened considerably since end July. The Straits Times Index slipped below the confluence of the 50- and 100-day moving averages at 3,277 and 3,278. The breakdown took place on expanding volume, a sign of selling. The next support appears at 3,200. However, since medium term indicators have weakened, with ADX turning up and the DIs have turned negative, the STI may fall below 3,200, to the support low of 3,110 reached on end-May.

ComfortDelGro raised to 'neutral' by RHB as valuations look stretch after STI outperformance

SINGAPORE (June 18): RHB Research has upgraded ComfortDelGro (CD) to ‘neutral’ as the stock looks fairly priced now although it remains confident over the company’s growth recovery.

“While we like the defensive nature of its earnings, investors should consider buying at a lower price (about $2.40),” says analyst Shekhar Jaiswal in a Tuesday report, adding that the stock is trading at 17.3 times 2019 earnings versus its five-year average of 15 times.

ComfortDelGro makes strategic investments in tech start-ups through venture capital fund

SINGAPORE (June 4): ComfortDelGro (CDG) announced that its six-month-old US$100 million corporate venture capital fund ComfortDelGro Ventures has made three strategic investments in transport-related technology start-ups in the areas of on-demand bus technology, fleet management and autonomous vehicle safety testing.

The first is the group’s investment in SWAT, a Singapore-based shared mobility technology company that routes vehicles optimally to offer the highest utilisation rates and service levels.

Accumulate ComfortDelGro on dips given good track record: UOB

SINGAPORE (May 28): UOB Kay Hian recommends investors "buy" ComfortDelGro (CDG) on dips with a target price of $2.77 following the group’s results announcement.

See: Brokers shift gear to 'hold' for ComfortDelGro after good run

CDG on May 14 announced that its 1Q19 earnings have increased by 6.2% y-o-y to $70.4 million, due to higher revenue, driven by strong contributions from recent acquisitions made in 2017 and 2018.

Brokers shift gear to 'hold' for ComfortDelGro after good run

SINGAPORE (May 16): Analysts are mostly neutral on ComfortDelGro Corporation (CDG) after the group announced at 6.2% y-o-y increase in its 1Q19 earnings to $70.4 million, due to higher revenue, driven by strong contributions from recent acquisitions made in 2017 and 2018.

Revenue grew by 7.8% y-o-y to $947.3 million, with the topline growth coming mainly from the Public Transport Services, Automotive Engineering Services and Driving Centre businesses, but this was offset in part by lower income from the Taxi and Bus Station businesses.

ComfortDelGro posts 6.2% higher 1Q earnings of $70.4 mil on topline boost from acquisitions

SINGAPORE (May 14): ComfortDelGro Corporation Limited (CDG) has announced earnings of $70.4 million for the 1Q ended March, rising 6.2% from $66.3 million in 1Q18 due to higher revenue, driven by strong contributions from recent acquisitions made in late 2017 and 2018.

Revenue for the quarter grew 7.8% on-year to $947.3 million from $878.8 million, with the topline growth coming mainly from the Public Transport Services, Automotive Engineering Services and Driving Centre businesses.  

OCBC raises ComfortDelGro's fair value estimate amid expectations of smoother ride ahead

SINGAPORE (Apr 17): OCBC Investment Research is keeping its “hold” call on ComfortDelGro (CDG), but raising its fair value estimate to $2.63 from $2.38 on the back of improved market sentiment for the public transport operator.

Analyst Low Pei Han notes that the share price of CDG’s 74.5%-owned subsidiary SBS Transit has climbed around 56% year-to-date.

She adds that this has been supported by earnings growth with the contributions from the Seletar and Bukit Merah Bus Packages, which commenced operations from March and November 2018, respectively.

RHB says be ready to take profit from ComfortDelGro

SINGAPORE (Apr 3): RHB Securities is staying positive on ComfortDelGro’s growth in the public transportation sector but after delivering 21% YTD returns, the stock now seems fairly priced at $2.59.

While CD’s dividend yield of 4% is still above the 10-year bond yield of 2.1%, RHB says this has fallen a tad below the STI’s 4.1% dividend yield.

“We deem it difficult for CD to continue outperforming the STI, as the stock is trading above +1SD from its 5-year mean P/E of 15.4x,” says RHB.

ComfortDelGro started at 'hold' by Maybank with $2.45 target price; says acquisitions are key to re-rating

SINGAPORE (Mar 4): Maybank Kim Eng is starting coverage on ComfortDelGro (CDG) at “hold” with a target price of $2.45.

This comes on expectations the group’s transport focus and global expansion, which will provide a decent shelter amid private taxi-hailing competition, has been priced into valuations of 17 times 2019E-20E P/E.

ComfortDelGro raised to ‘buy’ with $2.65 target price by RHB

SINGAPORE (Feb 15): RHB Research has upgraded ComfortDelGro to “buy” with $2.65 target price given the stock could re-rate further on expected strong profit contribution from new acquisitions, continuing organic growth in public transport business and lack of material rise in competition so far from private hire car players in its taxi business.

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