One of the best ways to pick stocks rated by analysts is to use the Trending Stocks tool by TipRanks. This tool is available for seven different markets and provides a list of stocks that have been recently rated by analysts. Using this tool, we have shortlisted Yangzijiang Shipbuilding (SG:BS6) and ComfortDelGro (SG:C52) from the Singapore market. These companies have Strong Buy ratings and are also paying good dividends.
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The analysts are highly bullish on these stocks and expect more than 25% growth in the share prices.
Let’s discuss these stocks in detail.
Yangzijiang Shipbuilding (Holdings) Ltd.
Yangzijiang Shipbuilding is a group company with businesses like shipbuilding, marine engineering, logistics, leasing, and real estate.
The company’s stock has skyrocketed in the last year, with 77% returns. The analysts feel the company’s split from its financial arm, Yangzijiang Financial, in 2022 has pushed the profits and stock price higher.
Despite the solid growth in the share price, analysts are bullish on the stock. Most recently, analyst Adrian Loh from UOB Kay Hian has reiterated his Buy rating on the stock. Loh believes the company will increase its dividends by 100% for the full year of 2022. The dividend in 2021 was S$0.05 per share. The company’s strong set of earnings and an even stronger order book make the analysts confident about the dividend growth. The current dividend yield of the company is 3.96%.
The new contract wins have been impressive and have boosted the total order book to $8.13 billion, which includes 134 vessels to be delivered by 2025. Loh expects more order wins worth $400 million in the near future.
Yangzijiang Shipbuilding Share Price Target
According to TipRanks’ rating consensus, Yangzijiang Shipbuildingstock has a Strong Buy rating.
The BS6 target price is S$1.61, with an upside potential of 30%.
ComfortDelGro
ComfortDelGro is a land transport company with operations spread across seven countries and a fleet of more than 30,000 vehicles.
Contrary to Yangzijiang, ComfortDelGro’s stock has been trading down by 12% in the last year. The analysts see this as a great opportunity to enter the stock, considering the business operations are back to normal after the pandemic.
However, the company’s half-yearly performance depicts that it is right on the path of recovery with visible results. The company’s revenue of S$1.8 billion increased by 6.7% on a year-on-year basis. The profits after tax also increased by 29% to S$139 million. Post such an improvement in the numbers, the company announced a special dividend of S$0.14 per share, along with an interim dividend of S$.0285 per share. ComfortDelGro’s dividend yield is 4.15%, as compared to its sector average of 1.64%.
Shekhar Jaiswal from RHB Capital has kept his Buy rating on the stock, based on higher tourist numbers after the opening of China’s borders. Jaiswal is also bullish on the company’s cash position, which could lead to more dividends. The increased pressure on the company’s margins remains a concern for analysts.
ComfortDelGro Share Price Target
According to TipRanks, ComfortDelGro’s stock has a Strong Buy rating, based on five Buy, and one Hold recommendations.
The C52 price forecast is S$1.68, which has an upside of 35% on the current price level.
Jaiswal has reduced his target price on the stock from S$1.8 to S$1.65.
Ending Notes
The analysts are bullish on Yangzijiang and ComfortDelGro based on their strong earnings prospects in the future. Moreover, these companies are stable with dividend payments and aim at continuously improving shareholders’ returns.
