ComfortDelGro Expected to Benefit from Singapore's Transport Fare Hike
Dow Jones
Oct 05
0207 GMT - ComfortDelGro may benefit from Singapore's planned public transport fare increase of 7.0%, effective Dec. 26, RHB Research's Shekhar Jaiswal says in a research report. This is positive for rail operations of its subsidiary SBS Transit, with net revenue uplift for SBS Transit at around 18.8 million Singapore dollars, the analyst estimates. The incremental earnings contribution will mostly depend on energy costs in 2027, with the latest operating trends supporting a cautious view on earnings conversion. RHB sees the fare increase cushioning higher rail operating costs, rather than creating a new earnings catalyst for ComfortDelGro. It maintains the stock's buy rating and a target price of S$1.50. Shares are 0.8% lower at S$1.26.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.