DBS Group Research’s Rachel Tan has upgraded her rating on Raffles Medical to “buy” from “hold” with a raised target price of $1.40, up from her previous target price of 95 cents. 

“We applied the historical mean price-to-earnings or P/E (from 2012) of 30 times to
average FY2021-FY2022 earnings, plus 20 cents per share for its China hospitals,” she writes.

In a June 7 report, she says the group is “the biggest beneficiary of Singapore’s new norm – the “test, trace and vaccinate” strategy announced by the Republic’s prime minister Lee Hsien Loong on May 31.

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