Comfort Delgro

Comfort Delgro: Barclays maintains Underweight , TP $1.82 from $1.51, says good but expensive. Sees opportunities emerging for the company’s Australia bus operation unit as the govt pushes harder for the privatization of bus services. For the Singapore taxi business, expect the increased popularity among taxi drivers to rent taxis to drive earnings growth faster than previously expected. Raises 2013E EPS by 11% and 2014E EPS by 12% . Despite the upward earnings revision, the house still finds the stock’s valuation demanding (15x 2013 PE) and relatively less attractive than peers (12x). Believe the main upside risks are stronger-than-expected growth in the Australia bus operation and Singapore taxi business, as well as lower-than expected operating costs such as labour and fuel.