Starting next month, GrabCab, a subsidiary of Grab Holdings, will put 40 cars on the road - becoming the sixth Singapore taxi operator. With the word out, GrabCab has received applications from between 700 and 800 individuals to be its drivers.
ComfortDelGro is likely to face further competitive pressure for its Singapore taxi business, with Grab Holdings entry into this market. On the other hand, with its continued expansion into new businesses outside Singapore, possible generating additional earnings.
"With the recent weakness in share price, we reckon that ComfortDelGo is trading at attractive levels, underpinned by strong earnings growth and a decent 2025 dividend yield of 6%," state
UOB Kay Hian analysts Llelleythan Tan Yi Rong and Heidi Mo, as they held their "buy" call and $1.71 target price.
