ComfortDelgro

ComfortDelgro: OCBC initiates coverage with Hold call and $1.53 TP. House note that recent 1Q12 results showed broad-based increases across most operating segments and expect this modest growth to continue but anticipate subdued OP margins, as domestic pressures squeeze margins on its bus and rail segments, and marginalising positive results from its taxi and overseas ventures. Forecasting only slight increases in OP margins in FY12/13, utilised the dividend discount model (DDM) for valuation with a conservative payout assumption of 50% of earnings.