ComfortDelgro

ComfortDelgro: CS downgrades to Neutral, TP $1.80 from $1.85. Note that dodest growth, largely priced in. Modest earnings growth expected, expect CD’s key domestic operations to remain challenged in light of greater regulatory scrutiny. Rail earnings are expected to see temporary decline due to the start-up of Downtown line. Taxi earnings growth is likely to be capped by the 2% fleet expansion ceiling due to the new Taxi availability rules. Elsewhere, its Australian bus business is likely to see profits decline in 2014 after losing two out of five bus operating regions last November. TP based on a 15x FY13E P/E, (in-line to market as well as its own 10yr average) is warranted in light of the modest growth expectations.