land transport sector

The worst looks over for taxis

SINGAPORE (Sept 27): Phillip Capital is keeping an “overweight” recommendation on the land transport sector due to positive industry restructuring following the exit of Uber and the worst being over for the taxi industry.

The research house has also maintained its “accumulate” rating on ComfortDelGro with an unchanged target price of $2.78.

This month marks the second consecutive month that Singapore taxi companies – Comfort Taxi, CityCab and Prime – grew their fleets m-o-m.

ComfortDelGro kept at 'accumulate' as ride-hailing congestion clears

SINGAPORE (July 10): Phillip Securities Research is keeping its positive outlook on the land transport sector as the storm appears to have blown over for the taxi industry.

“We believe the worst is over for the taxi industry, in view of the positive impact following the exit of Uber and resultant restructuring of the ride-hailing industry,” says analyst Richard Leow in a report on Monday.

While the taxi population continues to contract, Leow points out that the rate of decline shows sign of bottoming.

Regulatory changes expected to drive earnings for Singapore's land transport sector

SINGAPORE (Mar 22): Phillip Capital is maintaining an “overweight” for Singapore’s land transport sector on regulatory reviews and changes with ComfortDelGro (CDG) its top “buy” pick with a $2.50 target.

In addition, regulatory changes on fare formula and licensing of private-hire car companies could be catalysts for a re-rating for the stock.

In a Thursday report, analyst Richard Leow says, “We forecast CDG's earnings to have bottomed in FY17, with the Public Transport Services segment largely driving earnings going forward.”

Why analysts think ComfortDelGro investors can rest easy

SINGAPORE (Jan 6): UBS and RHB are reiterating their “buy” calls on ComfortDelGro with target prices of $3.43 and $3.24 respectively in anticipation of higher earnings growth over the next few years.

In a report on Tuesday, UBS analysts Rachel Tan and Cheryl Lee opine that the transport company’s recently-announced acquisition of CabCharge Australia’s remaining 49% stake in ComfortDelGro CabCharge Pty Ltd (CDC), should be funded without significant balance sheet strain.

Why consumer staples will remain at the forefront of attention in 2017

SINGAPORE (Jan 4): In the opinion of RHB analyst Juliana Cai, consumer discretionary spending in Singapore is likely to continue being weighed down by persistent concerns over job security and stagnant wages – bringing consumer staples to the forefront of attention this year.

Singapore’s land transport sector is revving up for a smooth ride

SINGAPORE (Jan 3): RHB has given Singapore’s land transport sector an “overweight” rating amid regulatory tailwinds and improved growth prospects.

As the only publicly listed stock offering exposure to the sector, ComfortDelGro has been highlighted as one of RHB’s top “buy” recommendations with a target price of $3.24.

Land transport sector ‘neutral’ amid regulatory changes

SINGAPORE (Aug 18): OCBC Investment Research is keeping its “neutral” rating on Singapore’s land transport sector amid what has been “a year of many regulatory changes”.

“Since the start of CY16, Singapore’s land transport sector has been filled with much news and activities, impacting across all three modes of public transport – rail, bus and taxi industries,” says OCBC lead analyst Eugene Chua in a Thursday report.

New regulations for the private hire car service industry were introduced in April, with a focus on ensuring safety for commuters.

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