Singapore’s land transport sector is revving up for a smooth ride

SINGAPORE (Jan 3): RHB has given Singapore’s land transport sector an “overweight” rating amid regulatory tailwinds and improved growth prospects.

As the only publicly listed stock offering exposure to the sector, ComfortDelGro has been highlighted as one of RHB’s top “buy” recommendations with a target price of $3.24.

In a Tuesday note, analyst Shekhar Jaiswal observes a “positive impact” from the recent implementation of the government contracting model (GCM) for buses, which transfers revenue risk to Singapore’s government while enabling bus operators to earn a reasonable profit margin for providing higher service levels.

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