“We recognise that investors are concerned about Raffles Medical’s flattish FY2022 profit growth amidst lower contribution from Covid-19 related revenue in Singapore, rising inflation, and slower than earlier guided growth in its China business,” the analyst writes. “However, we remain optimistic on Raffles Medical’s Singapore operations gradually reverting to normal, which will help offset some decline in Covid-19 related revenue and eventually drive growth in 2023 and beyond.”
RHB Group Research analyst Shekhar Jaiswal has kept a “buy” rating on Raffles Medical with a target price of $1.50 as he sees the group as having a “sound long-term growth” and “reasonable valuation” at its current share price levels.
Jaiswal’s target price represents a 33.9% upside to Raffles Medical’s share price of $1.12 as at the time of writing on July 25. His target price, which includes a 2% environmental, social and governance (ESG) premium, is based on a fair value of $1.48.
