SINGAPORE (July 8): KGI Securities has initiated coverage on Singapore Medical Group (SMG) with an “outperform” call and target price of 34 cents, which represents a total upside of 39.0%, including a forecasted dividend yield of 1.4% for FY21F.

“We assigned a fair, given the limited downside risks, but conservative 11x FY21F P/E based on its 1-year historical average and more than 30% discount to its peer averages, as we remain cautious about the extent of impact of Covid-19 on the Group’s performance, in Singapore and overseas,” says analyst Amirah Yusoff in a Wednesday report.

Yusoff has forecasted profit after tax and minority interests (PATMI) for SMG in 2020F to come in at $11 million, with forecasted earnings per share of 2.33 cents.

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