DMG & Partners has raised Raffles Medical Group’s (RAFG.SI) target price to $2.09 from $1.86 and maintained its “buy” rating.

Raffles Medical, being the second-largest private healthcare provider in Singapore, has benefitted from renewed interest in the stable and defensive healthcare sector after Khazanah and Fortis Healthcare (FOHE.BO) started a bidding war for Parkway Holdings (PARM.SI), DMG said in a report.

“We think that as the region’s economy improves, patient volume growth momentum is likely to continue on into the next few quarters,” the broker said.

The firm has also consistently been able to record growing patient volume, even during times of economic uncertainties, it added.

Raffles Medical flat at $1.80.