Report
Gareth James
EUR 101.80 For Business Accounts Only

Structural change in the taxi industry threatens Cabcharge's business model.

We have cut our fair value estimate for no-moat Cabcharge by 10% to AUD 2.25 per share following the sale of its 49% stake in the ComfortDelGro Cabcharge, or CDC, bus joint venture to ComfortDelGro Corporation. Cabcharge will receive net proceeds of AUD 183 million, 27% below the AUD 252 million book value of the investment at June 30, 2016. We expect approval from the foreign investment review board and settlement by February 2017. Our previous fair value estimate of AUD 2.60 per share implied ...
Underlying
Cabcharge Australia Ltd.

CabCharge Australia operates Taxi Networks and provides an alternative payment system to cash for the Taxi Industry. Co. provides Taxi Network services in Sydney, Melbourne, Adelaide, Newcastle, regional Victoria and New South Wales, and the Northern Territory. Network services include taxi booking services, taxi fit-outs and repairs, vehicle financing and insurance, and driver training and education. Co. also holds a 49.0% investment in a route, school and charter bus services company, ComfortDelGro Cabcharge Pty Ltd, and a 49.0% investment in CityFleet Networks Ltd, a provider of account, booking and dispatch services for taxis and private hire vehicles, and coach services in the U.K.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Gareth James

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