The analyst has cut his EPS estimates for the group by 1-6% to factor in further taxi weakness, and believes this is captured in his research assumption of a 12-15% fleet size reduction per annum.
SINGAPORE (Sept 29): Maybank Kim Eng is upgrading its call on land transport operator ComfortDelgro (CDG) to “buy” from “hold” while raising its price target on the stock to from $2.25 to $2.40, which implies 16.3 times FY18E earnings per share (EPS).
In a Thursday report, analyst John Cheong speculates that the downside for CDG’s taxi operations has been largely priced in after its 12 million share price correction of 28%.
