ComfortDelGro - DBS Research 2023-11-15: UK Public Transport Turning A Corner

• We maintain our BUY recommendation on ComfortDelGro (SGX:C52) with higher revised target price of S$1.67 on earlier than expected UK Public Transport turnaround and higher margins for Taxi & Private hire segment.

3Q23 slightly ahead of expectations

• - Read this at SGinvestors.io -

UK Public Transport turned profitable in 3Q23.

• UK Public Transport segment reported operating profit of S$6.1m, a turnaround from four consecutive quarters of losses. This was due to UK fare indexation kicking in and renewal of contracts at much higher margins as the bidding environment has turned more sensible and less aggressive, according to management.
• - Read this at SGinvestors.io -

Taxi & Private Hire margin continues to improve with introduction of platform fees and lower rental discounts in China.

• Read more at SGinvestors.io.

Above is an excerpt from a report by DBS Group Research.
Clients of DBS may access the full PDF report @ https://www.dbs.com/insightsdirect/.

Read also DBS's most recent report:
2025-03-17 ComfortDelGro - Double-digit Earnings Growth Momentum To Sustain Into 2025.

Previous report by DBS:
2024-09-12 ComfortDelGro - Underappreciated International Expansion.

Price targets by 5 other brokers at ComfortDelGro Target Prices.

Listing of research reports at ComfortDelGro Analyst Reports.

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