The SGX-listed ComfortDelGro Corporation Limited (SG:C52) has received a Strong Buy rating from analysts, making it a favourable option for investors in 2024. Analysts are optimistic about the overall recovery of the company’s operations and its earnings growth. ComfortDelGro stock gained 14.63% in trading in 2023.
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ComfortDelGro is a global transportation company with an extensive fleet that includes buses, taxis, and various rental vehicles. Operating on an international scale, the company has a presence in seven countries.
Strong Q3 2023 Earnings
ComfortDelGro reported its third-quarter results for 2023 in November, with a 54.5% year-on-year jump in its net profit to S$49.9 million. The revenue for the period experienced a 3.8% year-on-year increase, reaching $996.6 million.
The revenue for the public transport business rose by 3.4% growth, while the operating profit grew by 23.8%, driven by renewals and indexation in the UK. Regarding its taxi and private-hire business, the company acknowledged sustained high demand despite increased competition in the sector. The company’s Singapore taxi fleet size remained steady during the quarter, managing a slight increase in its market share.
Analysts Remain Bullish
After the earnings announcement, most analysts are optimistic about the stock, supported by various positive factors, including an upward trend in earnings and a transport recovery landscape.
Analyst Andy Sim from DBS has the highest price target on the stock at S$1.67, predicting an upside of almost 20%. He confirmed a Buy rating on the stock in December.
Most recently, Macquarie analyst Foo Zhi Wei maintained a Hold rating on the stock but predicted a downside of 12% in the share price.
What is the Target Price for ComfortDelGro?
Based on six Buys and one Hold recommendation, C52 stock has received a Strong Buy consensus rating on TipRanks. The ComfortDelGro share price forecast is S$1.55, implying a change of 10.4% from the current price level. Moreover, the stock offers a dividend yield of 3.4%.
