Raffles Medical Group: OCBC Research initiates at Hold with $2.32 target price based on 24X FY11 P/E. Likes RMG's growth prospects & outlook for healthcare providers, but believes most of the positives have already been priced in. Cites focus on improving cost mgmt & operational efficiency as group’s key strengths, widening operating margin to 20.8% in FY09 from 11.7% in FY04.
Notes company is in midst of enlarging its Spore hospital & increasing the depth & breadth of specialties, coupled with the recruitment of more specialists, will likely provide further upside to margin expansion in the future. Long term uptrend remains intact with immediate support at $2.29, followed by $2.22.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment