SINGAPORE (May 16): DBS is maintaining its “buy” call on Singapore O&G with adjusted-for-share-split target price of 80 cents on positive growth prospects even though it has had a slow start.
In a Monday report, analyst Rachel Tan says key potential catalysts include forecast-beating growth from its cancer and dermatology divisions, expansion into new specialisations like paediatrics and complementary services like IVF or imaging as well as better-than-expected margins improvement.
1Q17 growth was muted, according to Tan. Net profit was up 2.8% to $2 million on-year, forming 19% of DBS’s FY17 forecast earnings. However, management highlighted that 1Q is typically the weakest quarter and DBS has assumed marginal contributions from paediatrics in its FY17 estimates.
