ComfortDelGro - UOB Kay Hian 2023-04-14: Taxi Segment Leading Overall Recovery Despite Industry Headwinds

ComfortDelGro - Taxi Segment Leading Overall Recovery Despite Industry Headwinds

  • 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.
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Almost immune to COVID-19.

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  • 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

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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 @

Llelleythan Tan UOB Kay Hian Research | 2023-04-14

Read also UOB's most recent report:
2024-05-15 ComfortDelGro - 1Q24 Earnings Below Expectations; Downgrade To HOLD.

Previous report by UOB:
2024-04-23 ComfortDelGro - Backed By Favourable Tailwinds.

Price targets by 5 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


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