Healthcare/ Raffles Med: OCBC notes that the healthcare sector has generally been rewarding this year, with a comparably better gain of 25.7% vs. the benchmark STI’s decline of 16.5% YTD as of 14 Dec. It thinks that he sector would likely continue to be favoured by investors, given the early stage of growth for the sector across the region and range of long term opportunities. On the other hand, some sub-sectors such as the medical device industry are still characterized by intense competition and pricing pressures.
Nevertheless, it remains Neutral on Healthcare, noting that valuations do not seem sufficiently attractive on a broad-based level. There is preference for stocks that can deliver decent earnings. Longer term investors should consider Raffles Medical [BUY, S$4.59] as their pipeline of expansion plans would sustain growth, and their outlook is comparably comforting in uncertain times.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment