ComfortDelGro - RHB Research 2026-05-20: Maintain BUY On Risk/Reward Reset

• ComfortDelGro's share price has fallen 11% since its 1Q26 results that reflected a sharp earnings miss. We cut FY26F-28F profit by 24%, 29% and 34%, but believe the recent selloff presents an opportunity to accumulate the stock as:

  1. - Read this at SGinvestors.io -
  2. Disruption from Addison Lee is temporary rather than structural; and
  3. Operating cash flow generation remains strong.

• Keep BUY, with new S$1.45 ComfortDelGro's target price from S$1.65, 13% upside. In our view, ComfortDelGro’s 5.5% dividend yield should provide downside support.

1Q26 results.

• - Read this at SGinvestors.io -

• Public transport, however, remains resilient and we believe is being unfairly penalised as revenue rose 7.2% y-o-y to S$814.5m, EBIT increased 2.5% to S$37.3m, while the slight margin decline to 4.6% largely reflects fuel indexation pass-throughs rather than underlying cost pressure.

Takeaways from the call.

• Read more at SGinvestors.io.

Shekhar Jaiswal RHB Securities Research | https://www.rhbgroup.com/ 2026-05-20

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