Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD
Nomura Research in a Sept 8 research report says: "ComfortDelgro's securing of the DTL tender, its second main line after the NEL (North East Line), underscores its growing success as a rail operator and brings it further up the ladder as a profitable, international multi-modal land transport operator in our view.
"While the tendered SGD1.6bn licensing fee appears daunting, it will be staggered over the 19-year license period starting in 2013. At current prices, CD trades at FY2011/2012F P/Es of 12x and 11x and P\Bs of 1.4x and 1.4x, both at the lower end of historical ranges.
"CD is likely to retain its 50% payout ratio, which translates to FY2011/2012F dividend yields of 4.4% and 4.7%, attractive relative to peers. Our revised target price of $1.72 ($1.98 previously) offers 28% upside from current levels. MAINTAIN BUY."
Company Name: COMFORTDELGRO CORPORATION LTD
| Research House: Nomura | Price Call: BUY | Target Price: 1.72 |
Nomura Research in a Sept 8 research report says: "ComfortDelgro's securing of the DTL tender, its second main line after the NEL (North East Line), underscores its growing success as a rail operator and brings it further up the ladder as a profitable, international multi-modal land transport operator in our view.
"While the tendered SGD1.6bn licensing fee appears daunting, it will be staggered over the 19-year license period starting in 2013. At current prices, CD trades at FY2011/2012F P/Es of 12x and 11x and P\Bs of 1.4x and 1.4x, both at the lower end of historical ranges.
"CD is likely to retain its 50% payout ratio, which translates to FY2011/2012F dividend yields of 4.4% and 4.7%, attractive relative to peers. Our revised target price of $1.72 ($1.98 previously) offers 28% upside from current levels. MAINTAIN BUY."
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