This comes after the land transport operator last week reported an 8.2% decline in 3Q earnings to $80.1 million, in line with RHB’s expectations, as revenue for its taxi business fell due to higher competition.
SINGAPORE (Nov 14): RHB Research is downgrading its call on ComfortDelGro (CDG) to “neutral” from “buy” with a lower target price of $2 from $2.60 previously, on expectations that the sequential decline in the group’s Singapore taxi fleet and hire-out rate will continue into 4Q17.
The new target price implies a P/E multiple of 14.5 times 2018F estimates, which is close to its historical average forward P/E of 15.2 times.
