Comfort DelGro

Comfort DelGro: Barclays says Comfort faces cost pressures and may see lower margins in 2Q-4Q12, particularly in the SBS Transit unit, citing increased hiring in preparation for the Downtown Line's trial operation and increased regular rail-system maintenance expenses to pre-empt any potential operation disruption. Notes 1Q12 results were in line with its forecasts, with "blessings" from overseas operations, particularly U.K. and Australian bus operations. But adds, it struggles to find a strong organic earnings driver in the company's very diversified business mix that could justify a brighter earnings prospects. However, the diversification does lend substantially to the stability of the dividend payment. Barclays pencils ~4% dividend yield for 2012. Keeps an Underweight call with TP $1.51. The stock is up 1.4% at $1.48.