Analyst Eric Ong from Maybank reaffirmed his bullish rating on SGX-listed ComfortDelGro Corporation Limited (SG:C52), supported by a positive outlook for taxi revenues. Ong raised his price target on the stock from S$1.55 to S$1.60.
ComfortDelGro is a global transportation company with an extensive fleet that includes buses, taxis, and various rental vehicles.
Maybank’s Bullish Review on ComfortDelGro
Maybank is bullish on ComfortDelGro stock, as he expects higher taxi revenues after the company increased its taxi booking commission rate to 7% from 5%. The new rates are applicable from January 2, 2024, for both app and phone-booked rides. Starting in January, the company also made the 10% rental waiver permanent for its drivers.
Analyst Ong believes this move is “positive” and expects the increased taxi revenue to effectively “offset the rising cost of maintaining and upgrading technology systems.”
Ong is also bullish on the company’s acquisition of 100% of Australian taxi network operator A2B. This deal will further enhance the company’s presence in Australia and complement its “point-to-point (P2P) mobility business” strategy. The analyst noted that the acquisition, set to be completed in the first half of 2024, is expected to contribute around 2% to the company’s full-year bottom line.
Moreover, Ong raised his earnings forecasts by 2% for FY24 and 3% for FY25.
What is the Target Price for ComfortDelGro?
C52 stock has received a Strong Buy consensus rating on TipRanks, backed by six Buys and one Hold recommendation. The ComfortDelGro share price forecast is S$1.55, implying an upside of 10% from the current price level.
