Yong has a target price of 28 cents for Econ Healthcare, with a raised weighted average cost of capital (WACC) of 11.8%.
DBS Group Research analyst Paul Yong has downgraded Econ Healthcare (Asia) to “hold” after the private nursing home operator invested some $4 million in Hong Kong-listed Crosstec, which later saw an 84% decline in share price.
“While the losses could be recouped, we believe Econ’s investment mandate and strategy should be tightened significantly,” writes Yong in a Jan 12 note.
