- 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.
