KPJ (5878) : Accumulate KPJ on weakness, says MIDF Research
KUALA LUMPUR (Oct 31): MIDF Research has maintained its Neutral rating on KPJ Healthcare Bhd at RM3.92 with a higher target price of RM4.05 (from RM3.40) and said KPJ traded at a premium against the broader market but so did the entire healthcare sector.
In a note Friday, the research house said while KPJ was not the cheapest stock among its peers, the premium was justified by favourable factors underpinning its prospects.
“We expect gestation losses from new hospitals would be less of a drag to KPJ’s forward earnings as performances of its existing hospitals continue to improve.
“As such, we recommend accumulating KPJ on weakness.
“Given the limited upside to our revised SOTP, we reiterate our Neutral call on the stock with a revised target price of RM4.05,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Oct 31): MIDF Research has maintained its Neutral rating on KPJ Healthcare Bhd at RM3.92 with a higher target price of RM4.05 (from RM3.40) and said KPJ traded at a premium against the broader market but so did the entire healthcare sector.
In a note Friday, the research house said while KPJ was not the cheapest stock among its peers, the premium was justified by favourable factors underpinning its prospects.
“We expect gestation losses from new hospitals would be less of a drag to KPJ’s forward earnings as performances of its existing hospitals continue to improve.
“As such, we recommend accumulating KPJ on weakness.
“Given the limited upside to our revised SOTP, we reiterate our Neutral call on the stock with a revised target price of RM4.05,” it said.
http://www.theedgemarkets.com
