Analyst from CGS-CIMB reiterated a Buy rating on Comfortdelgro and keeping the price target at S$1.70.
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CGS-CIMB’s rating is based on several positive factors influencing ComfortDelGro’s performance. The company’s 9M25 core net profit aligned with expectations, largely due to increased contributions from its overseas operations, particularly in the UK. This growth is supported by strategic acquisitions and new contracts, such as the Metroline Manchester, which have expanded the company’s earnings base and improved margins.
Furthermore, ComfortDelGro’s future growth prospects are bolstered by a robust global tender pipeline, including significant projects in the UK, Europe, and Australia. These opportunities are expected to enhance the company’s revenue and market position. The reaffirmed target price of S$1.70 reflects these growth prospects, supported by a solid yield and the potential for further earnings improvements and contract wins. However, potential risks include challenges in integrating acquisitions and maintaining margins.
In another report released today, DBS also maintained a Buy rating on the stock with a S$1.80 price target.