Singapore Stock Market News

ComfortDelGro - Positive steps forward

StockFanatic
Publish date: Sun, 25 May 2014, 09:04 PM
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With our FY16 EPS raised by 2.3% as the first wave of the government's contracting model for buses kicks in, we raise our DCF-based target price (7.1% WACC), to reflect its better earnings visibility beyond FY16. Reduced capex and overall improvements in its cash-flow profile and balance sheet should allow CD to boost its overseas growth and/or dividend payouts. We maintain our Add rating, with catalysts expected from the above.
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