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PhillipCapital starts Q&M at 'buy' with 'record earnings expected'

Felicia Tan
Felicia Tan2/8/2021 3:53 PM GMT+08  • 4 min read
PhillipCapital starts Q&M at 'buy' with 'record earnings expected'
PhillipCapital has given the group a target price of 70 cents.
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PhillipCapital has initiated “buy” on Q&M Dental Group with a target price of 70 cents as the brokerage expects the group to post “record earnings” for its upcoming results.

The target price, according to PhillipCapital’s head of research Paul Chew, is based on 20 times FY2021 price-to-earnings (P/E) for its “core operations and market cap valuations of its listed associate Aoxin”.

The way Chew sees it, valuations for the healthcare service sector can rise to almost 40x P/E. As it is, the historical normalised P/E for Q&M is averaging around 38x, with a low of 26x.

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