Brokers' take

ComfortDelGro Hold May 28 close: S$2.45 Target price: S$2.37 CGS CIMB, May 25

COMFORTDELGRO (CD) said it was parting ways with Lion City Rental (LCR) given that Uber's exit renders the tie-up less attractive. To recap, in December 2017, as part of CD's tie-up with Uber, CD announced the planned acquisition of a 51 per cent stake in the operator of Uber's LCR for S$642 million.

Management reiterated that it still intends to enter the private hire vehicle space as it foresees increasing convergence of private hire vehicles and taxis in the personalised mobility market.