Based on the analyst’s calculations, the acquisition is accretive to CDG’s FY2025 earnings by 6% to 7% based on the cost of debt to fund the move. However, the analyst has only increased his FY2025 estimates by a more “conservative” 4% instead.
RHB Bank Singapore analyst Shekhar Jaiswal has maintained his “buy” call on ComfortDelGro (SGX:C52
) with a higher target price of $1.70 from $1.65 following the acquisition of Addison Lee, one of London’s largest private hire vehicles fleet operators.
CDG announced, on Oct 23, that it acquired the iconic premium private hire, courier and black taxi provider for GBP269.1 million ($461.2 million). “Addison Lee is London's biggest minicab firm with [over] 5,000 vehicles as per its FY2023 financial statements. This includes 1,021 full electric vehicles (EVs), 625 zero-emissions-capable hybrids, and [over] 1,000 ultra-low emissions zone or ULEZ-compliant internal combustion engine or internal combustion engine (ICE) vehicles,” notes Jaiswal.
