ComfortDelGro's Growth Likely to be Driven by International Expansion
Dow Jones
Aug 19
0148 GMT - ComfortDelGro's growth is likely to be driven by international expansion, DBS Group Research's Zheng Feng Chee says in a research report. Given Singapore's limited market size, the company has leveraged its strong balance sheet to actively pursue international acquisitions such as A2B Australia, the analyst notes. These acquisitions enhance its geographic diversification, complement existing operations, and are expected to be earnings accretive. DBS raises its 2027 earnings forecast for the transport operator by 5% to reflect faster recovery at London-based Addison Lee and continued U.K. public transport momentum. It raises the stock's target price to 1.40 Singapore dollars from S$1.30 with an unchanged hold rating. Shares are 0.7% lower at S$1.36.
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