- We recommend investors to take profit on any run-up in ComfortDelGro's share price close to our target price of S$1.29.
- For the public transport segment, ComfortDelGro’s rail ridership has recovered to near pre-pandemic levels and is expected to benefit from higher fares in 1Q23, dragged by the near-to medium-term earnings risks of losing its two bus packages.
- - Read this at SGinvestors.io -
Almost immune to COVID-19.
- - Read this at SGinvestors.io -
- For Mar 23, despite dipping 1.3% m-o-m, ComfortDelGro’s rail ridership improved 36.4% y-o-y, no surprise given that domestic COVID-19 measures have been fully eased. We also reckon that more commuters have shifted to trains due to elevated taxi and ride-hailing surcharges.
- With the 2.9% fare hike adjustment starting from 26 Dec 22, this would help mitigate falling margins that the public transport segment is facing due to higher overall inflationary cost push.
- Moving forward, we expect ComfortDelGro’s rail ridership to soften slightly in Apr 23 and May 23, due to rising domestic COVID-19 cases that may encourage commuters to work from home.
Impending announcement on Bukit Merah and Jurong West bus packages
- Read more at SGinvestors.io.
Above is the excerpt from report by UOB Kay Hian Research.
Clients of UOB Kay Hian may be the first to access the full report in PDF @ https://www.utrade.com.sg/.
Llelleythan Tan UOB Kay Hian Research | https://research.uobkayhian.com/ 2023-04-14
Read also UOB's most recent report:
2023-08-21 ComfortDelGro - No Longer In The West For Now.
Previous report by UOB:
2023-08-16 ComfortDelGro - Robust 2Q23 Results In Line As PATMI Hits Inflection Point.
Price targets by 6 other brokers at ComfortDelGro Target Prices.
Listing of research reports at ComfortDelGro Analyst Reports.
Relevant links:
ComfortDelGro Share Price History,
ComfortDelGro Announcements,
ComfortDelGro Dividends & Corporate Actions,
ComfortDelGro News Articles
