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Kim Eng Securities has raised its target price for Singapore healthcare provider Raffles Medical Group <RAFG.SI> to $2.55 from $2.20 and maintained its “buy” rating.
STATEMENT:
STATEMENT:
Kim Eng said Raffles Medical’s third-quarter results were in line with its expectations, adding that the recent takeover of hospital-operator Parkway <PARM.SI> by Malaysian state investor Khazanah highlights the value of good quality healthcare assets in the region.
“Despite the stock returning 210% since we initiated coverage 16 months ago, we expect the stock price to continue its steady climb upward, much like its profitability,” Kim Eng said in a report.
The brokerage expected that the expansion of Raffles Hospital over the next 24 months will allow Raffles Medical to maintain growth at the same steady rate for at least the next five years.
Raffles Medical reported on Monday a 13% rise in third quarter net profit to $10.7 million from a year ago mainly on an increase in revenue from its hospital services division.
At 0246 GMT, Raffles Medical shares were trading at $2.21 on a volume of 233,000 shares. Its shares have risen 58% in 2010.
