SINGAPORE (July 3): KGI Securities has initiated coverage on specialist healthcare group for women and children, Singapore O&G (SOG), with a “neutral” recommendation, and a 12-month target price of 32 cents.
“We highlight the key risks as a basis for our ‘neutral’ rating despite the inherent upside, and will re-evaluate our forecasts after 1H20 results,” say analysts Amirah Yusoff and Joel Ng in a Friday report.
“[We are] using a very conservative 16.0x P/E as compared to its 5-year average of 26.0x P/E, as we recognise that 2020’s earnings will inevitably be affected by the Covid-19 situation in Singapore. This represents a total upside of 27.6%, including FY20’s dividend yield of 3.8%,” they add.
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