Comfort Delgro

Comfort Delgro: CIMB maintains outperform with TP of $1.90. Note that current valuations of 13X CY11 PE vs 3 yr average of 17X PE & SMRT’s 19x CY11 PE appears undemanding, recommend investors to switch from SMRT to Comfort. Expect outlook for SG operations to remain positive with daily ridership for trains and buses rising almost every mth since start of yr. Further catalysts could include higher than expected div payouts.