DBS Group Research has maintained its “buy” call and $2.55 target price on IHH Healthcare, following the “surprised” resignation of CEO and managing director Kelvin Loh.
No further details were provided, other than Loh is leaving voluntarily.
“The resignation comes as a surprise and we believe it is untimely given it is too close to FY2022 results release,” says DBS in a Feb 23 note.
IHH Healthcare is due to report on Feb 28.
“While there are no further details available at this time, we note that there have been some recent changes in the Board of Directors, which saw two of IHH’s largest shareholders, Mitsui and Khazanah, change their respective representatives on the Board.
“We are not sure if these developments are related in any way,” adds DBS.
For now, DBS is not seeing “significant impact” on the healthcare group’s operations.
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“However, this could cause an overhang on the share price until a potential succession plan is known,” says DBS.
As at 9.46am, IHH Healthcare shares changed hands at $1.82, down 0.55%.