ridership declines

CGS-CIMB analyst Ong Khang Chuen is maintaining “hold” on transport operator ComfortDelGro (CDG), with a reduced target price to $1.46 from $1.50 previously, largely due to the Covid-19 pandemic.

With more people making working from home a norm, Sim expects average daily ridership of just 820,000, down from 1.19 million in FY2019.

“We know that things will continue to be tough for our cabbies still but having already extended full rental waiver for the last two months, we are unable to do so for a third,” says ComfortDelGro Taxi CEO Ang Wei Neng.

Apart from ComfortDelGro's weaker earnings in 1QFY2020 ended March, DBS analyst Andy Sim notes that the company is slated to be excluded from the MSCI Singapore Index from May 29, which could put significant pressure on the counter’s share price.