DBS Group Research analysts Woon Bing Yong and Ling Lee Keng have maintained their “buy” recommendation on Medtecs International Corporation as they see the company being “in for the long haul”.

Woon and Ling have also lowered their target price estimate on the counter to $1.25 from $1.30 based on 9.5 times blended FY2021/FY2022 earnings, which is Medtecs’ pre-Covid low price-to-earnings (P/E), they write.

“Our target price was revised down as we adjusted our base case assumptions for the Hospital Services and Trading & Distribution segments which were slightly too optimistic. This was also the reason behind our marginal 4% downward revision in FY2021 earnings,” they say.

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