DBS Group Research has initiated coverage on Medtecs International with a “buy” recommendation and a target price of $1.30, representing a 43% upside on the stock’s last traded price of 90.5 cents.

Analysts Yong Woon Bing and Ling Lee Keng says the stock is trading at a compelling value of 6.8x blended FY2021/FY2022F price-to-earnings (P/E) and that their target price estimates are based on 9.5x blended FY2021/FY2022F earnings.

“Our scenario analysis also values Medtecs at a range of 80 cents to $1.66,” they write.

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