Tuesday, October 5, 2010

RafflesMG - Raffles Medical target raised to $2.57 by UOB KayHian

Stock Name: RafflesMG
Company Name: RAFFLES MEDICAL GROUP LTD
Research House: UOB KayHian


UOB KayHian lifts Raffles Medical Group (R01.SG) target price to $2.57 from $2.00 after adjusting discounted cashflow valuation, says Dow Jones.  

New target implies 25.9x FY11 P/E vs mean P/E of 20.6x over 2003-2010, says broker.



“RMG is deserving of its premium valuation given the scarcity of quality and investable healthcare stocks in Singapore after the de-listing of Parkway,” says UOB KayHian, adding RMG well positioned to benefit from rising demand for quality healthcare in Asia, given its good reputation, transparent pricing. 

Keeps Buy call. Shares off 0.9% at $2.31 at 11:09 a.m.

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