The UOBKH analysts maintain “buy” on RFMD with a higher target price of $1.90 from $1.85 previously. The new target price represents a 32.7% upside against a last traded price of $1.43.
Amid a healthcare crunch, transitional care facilities (TCF) like that offered by Raffles Medical Group (RFMD) (SGX:BSL
) will benefit from their inclusion into Singapore’s healthcare ecosystem, say UOB Kay Hian (UOBKH) Research analysts Llelleythan Tan and John Cheong.
“With an ongoing demand-supply imbalance for public hospital beds, patients are being funnelled to private hospitals and step-down care facilities such as TCFs. As new additional public bed capacity would only be added from 2024 onwards, the Singapore government has indicated for longer term plans for TCFs to be included into the country’s healthcare system, benefitting private TCF operators such as RFMD,” write Tan and Cheong in a March 28 note.
