“The Great Manchester win further strengthens CDG’s public transport presence in the UK, where the economics for operators have turned positive with easing inflation and rational bidding prices,” says the team at DBS.
DBS Group Research and Maybank Securities have maintained their “buy” calls on ComfortDelGro (SGX:C52
) (CDG) with unchanged target prices of $1.80 and $1.60 respectively. These positive outlooks follow CDG’s recent development of gaining momentum in its overseas expansion.
CDG, on March 28, announced that it has successfully acquired contracts in the UK for the next five years. These awarded contracts allow CDG to operate four public bus services in Manchester under their UK unit Metroline. Worth GBP422 million ($720 million), the contracts expand CDG’s London portfolio by 30%, making the transport operator the fourth largest scheduled bus operator in London.
