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ComfortDelGro - Key takeaways from NDR

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Publish date: Tue, 09 Jun 2015, 12:38 PM
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During the NDR that we hosted for ComfortDelGro (CDG) in Kuala Lumpur last week, management provided an update on the group's recent developments and shared their view of the sector's outlook. Key topics addressed included the on-going public bus reform, the development progress of the Downtown Line (DTL) stage II and stage III and the group's growth strategies. We keep our FY15-17 EPS estimates intact and reiterate our Add call on CDG with an unchanged DCF-based target price of S$3.42 (WACC: 7.5%). Key catalysts ahead include earnings contribution from DTL stage II & III and continued overseas expansion via M&As.
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