Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Kim Eng expects the next two quarters to stay resilient as ComfortDelGro has increased its hedge for diesel in Singapore and the United Kingdom to 40% of bus operating requirements.
Company Name: COMFORTDELGRO CORPORATION LTD
| Research House: Kim Eng | Price Call: BUY | Target Price: 1.58 |
Kim Eng has upgraded Singapore transport operator ComfortDelGro (CMDG.SI) to buy from hold with a target price of $1.58.
Kim Eng said ComfortDelGro’S valuations, which were almost down to the 2008 crisis lows, were looking attractive.
ComfortDelGro’s second-quarter results were within expectations, Kim Eng said, noting that profit growth was across all segments except for the company’s Singapore bus operations and driving center in China.
ComfortDelGro’s second-quarter results were within expectations, Kim Eng said, noting that profit growth was across all segments except for the company’s Singapore bus operations and driving center in China.
Kim Eng expects the next two quarters to stay resilient as ComfortDelGro has increased its hedge for diesel in Singapore and the United Kingdom to 40% of bus operating requirements.
The house added that the recently approved fare increase by 1% in the city-state is expected to partly alleviate cost pressures.
At 12:43 p.m., ComfortDelGro shares were up 4.4% at $1.315. The stock has fallen around 15% so far this year.
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