Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Phillip Securities Research in a June 21 research report says: "Being a land transport operator, we opine that ComfortDelGro (CDG) has valuable defensive characteristics against a backdrop of uncertain economic environment.
"Currently, we see relatively little downside risk to our profit growth estimates of 2% for FY2011. In fact, the company's bus business could even see improved profitability resulting from lower oil prices in a global economic slowdown. With its global exposure, the key risk for CDG lies with potentially lower earnings from weaker forex translation.
"We used a blended valuation model of DCF and P/E (17X FY11e PATMI) to arrive at our target price of $2.01. CDG could potentially return 52.1% after incorporating our forecasted dividends of 6.1 cents over the next 12 months. MAINTAIN BUY."
Company Name: COMFORTDELGRO CORPORATION LTD
| Research House: Phillip Securities | Price Call: BUY | Target Price: 2.01 |
Phillip Securities Research in a June 21 research report says: "Being a land transport operator, we opine that ComfortDelGro (CDG) has valuable defensive characteristics against a backdrop of uncertain economic environment.
"Currently, we see relatively little downside risk to our profit growth estimates of 2% for FY2011. In fact, the company's bus business could even see improved profitability resulting from lower oil prices in a global economic slowdown. With its global exposure, the key risk for CDG lies with potentially lower earnings from weaker forex translation.
"We used a blended valuation model of DCF and P/E (17X FY11e PATMI) to arrive at our target price of $2.01. CDG could potentially return 52.1% after incorporating our forecasted dividends of 6.1 cents over the next 12 months. MAINTAIN BUY."
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