Comfort Delgro

Comfort Delgro: Credit Suisse upgrades to Outperform from neutral, based on earnings “accretion” arising from acquisitions of the UK and Australian bus operations made over the last three months. The house lifts EPS growth to ~9% for 2014e, and expects 2012-14e CAGR in excess of 4%, above the 2% CAGR over the 2007-12 period. The house has a new TP of $2.10 (from $1.85), based on 16x FY14e P/E. Notes the stock has fallen 14% over the past month and now represents better value.