SINGAPORE (June 20): CIMB Research is keeping its “reduce” rating on Raffles Medical Group (RMG) and lowering its target price by 12 cents to $1.25.
Already, Raffles Medical has seen its share prices retreat by close to 5% after the hospital operator turned in a set of uninspiring results in 1Q17. But CIMB believes there is still room for the counter to fall further.
“Raffles Medical is still trading at 25.8x CY18 EV/EBITDA, above peers’ 19x and its 10-year mean of 20x,” says CIMB analyst Jonathan Seow in a Monday report. “As valuations are still lofty, we do not think we are at the bottom yet.”
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