"While the hike was below our initial estimates, it was only marginally so and has immaterial impact to our FY26F earnings estimates," says DBS on Oct 15, adding that the increase reflects the government’s intent to smooth consumer cost increases and pare back subsidies.
DBS Group Research has kept its 'buy' call and $1.80 target price on ComfortDelGro after the Public Transport Council approved a 5% fare hike with effect from Dec 27, under its annual fare review exercise.
The increase of 5% is lower versus 6% DBS had projected, and is also significantly below the maximum allowable increase of 14.4% for 2026, with 9.4% deferred to subsequent years.
