Is ComfortDelGro’s speedy share price rally sustainable?

The stock breached its 52-week high in late January.

ComfortDelGro has led the charge amongst the local bourse’s transport plays in recent weeks. CDL’s share price has breached its previous 52-week high of $2.75 in late January, and the stock registered another 5% gain on February 10 to close at $3.09.

According to data from CMC Markets, at this level, CDL’s stock is priced at a PER of 22x, well above its historical average of 16x.

“Comfort will offer colour on their overseas operations when they report after the market close today. Unless they surprise the market with a solid report from their foreign businesses, or continue to show significant improvement in margins due to lighter fuel costs, upside for the stock at these levels remains limited to the $3.20 levels,” CMC Markets noted.