ComfortDelGro's stock fell sharply by 4.93% during intraday trading on Thursday, following a significant analyst downgrade and revised earnings projections.
DBS Group Research downgraded ComfortDelGro to "fully valued" from "hold" and slashed its target price to S$1.11 from S$1.60. The analyst cited softer taxi and private-hire operations across the company's markets, with competitive pressures from Grab's aggressive driver incentives potentially shrinking ComfortDelGro's fleet size in Singapore. Additionally, flight disruptions related to the Middle East conflict are weighing on volume in the U.K. market, with a full recovery unlikely in the second half of the year despite potential easing of concerns.
The research firm cut its 2026 and 2027 earnings projections for ComfortDelGro by 22% and 28% respectively, reflecting these operational challenges and competitive headwinds.