ComfortDelGro kept at 'add' by CIMB with $3.42 target price

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD

Research House: CIMB

Price Call: BUY

Target Price: 3.42

SINGAPORE (Feb 12): CIMB is maintaining its "add" call on ComfortDelGro with a target price of $3.42.

In a report out today, analysts Roy Chen and William Tng say ComfortDelGro's FY14 net profit was broadly in line with their expectations, coming in at 98% of forecast.

Meanwhile, the potential for higher operating margin and capital efficiency under the new Government Contracting Model (GCM), cost savings from low energy prices, as well as reduced losses from the Downtown Line could mean a rerating of its call on the transport operator.