UOB Kay Hian analyst Llelleythan Tan has maintained their bullish stance on CDGLF stock, giving a Buy rating on June 6.
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Llelleythan Tan has given his Buy rating due to a combination of factors influencing ComfortDelGro’s market position and future prospects. Despite the anticipated increase in competition from GrabCab’s entry into the domestic taxi market, Tan believes that the impact on ComfortDelGro will be minimal. This is because GrabCab’s rental rates and fare structures are similar to those of ComfortDelGro, which reduces the incentive for drivers to switch companies.
Additionally, ComfortDelGro’s strategic move to bid for an overseas rail contract in Melbourne is expected to be earnings accretive, providing a positive outlook for future growth. The current weakness in ComfortDelGro’s share price presents an attractive buying opportunity, supported by strong earnings growth and a solid dividend yield of 6% for 2025. These factors collectively underpin Tan’s decision to maintain a Buy rating with a target price of S$1.71.
According to TipRanks, Tan is a 2-star analyst with an average return of 1.3% and a 52.63% success rate.
In another report released on June 6, DBS also maintained a Buy rating on the stock with a S$1.80 price target.