The taxi business here will see gradual improvement once Phase 3 of Singapore’s re-opening begins, says RHB analyst Shekhar Jaiswal in an Oct 7 note. Jaiswal is maintaining his “buy” call on the transport operator, with a target price of $1.70.
“ComfortDelGro should benefit from gradual improvements in public transport ridership and increase in its taxi utilisation, as Singapore enters Phase 3 of re-opening the economy. Continued government support from extensions to the Jobs Support Scheme and Point-to-Point (P2P) Support Package to early-2021 should provide strong cost support for its Singapore operations. Given expectations of strong profit growth and an improvement in ROE for 2021F, we believe current valuations remain attractive,” writes Jaiswal.
