Paul Chew, an analyst from Phillip Securities, maintained the Buy rating on Comfortdelgro (CDGLF – Research Report). The associated price target remains the same with S$1.68.
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Paul Chew has given his Buy rating due to a combination of factors including ComfortDelGro’s impressive financial performance and strategic growth initiatives. The company’s first-quarter results for 2025 were in line with expectations, showing a significant year-over-year increase in operating earnings, particularly driven by a turnaround in the UK market. This improvement was attributed to the renewal of London bus routes and the new Metroline Manchester contract, which contributed to a substantial rise in operating profits.
Despite the high capital expenditure required for new buses and the transition to electric vehicles, ComfortDelGro’s growth outlook remains strong. The company is expected to benefit from its UK bus operations and the full-year contribution from Addison Lee taxi earnings. Additionally, the attractive dividend yield of 6% and a high payout ratio of 80% enhance the stock’s appeal. These factors support the maintained Buy recommendation with a target price of S$1.68.
In another report released on May 15, DBS also reiterated a Buy rating on the stock with a S$1.80 price target.