Comfortdelgro's cash gives it firepower, says CIMB

Stock Name: ComfortDelGro
Company Name: COMFORTDELGRO CORPORATION LTD

Research House: CIMB

Price Call: BUY

Target Price: 3.42

SINGAPORE (June 9): CIMB reiterates its add recommendation and $3.42 target on Comfortdelgro, saying it remains its preferred pick in Singapore's land transport sector.

The broker it thinks the Singapore public transport firm's strong balance sheet means it can make earnings-accretive.

The key catalysts include earnings contribution from a new train line in Singapore and overseas expansion, CIMB says after the meeting.

Comfortdelgro is down 1.3% at $3.04, while the benchmark FTSE Straits Times Index is down 0.6%.