The share price of the SGX-listed Raffles Medical Group (SG:BSL) has been trading in the red zone since 2023. Year-to-date, the stock is down by 8.3%. This could be attributed to lower turnover for the company, resulting from reduced COVID-19-related tests and revenues.
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Analysts believe the current downturn could be a good entry point for long-term investors, considering the forecasted growth of over 35% in the share price. According to analysts, the company has maintained a steady track record in the healthcare sector in Singapore. Its robust brand presence, diversified business segments, and well-planned growth strategies are among its key strengths.
Raffles Medical, based in Singapore, is a healthcare company that provides medical and hospital services across five countries in Asia.
The Bullish Case
Last month, the company reported its H1 2023 earnings. The revenues were down by 9.5% to SG$370.9 million as compared to the same period a year ago. Despite this, the company managed to deliver a 0.5% increase in its net profit of S$59.9 million.
Moving forward, analysts are bullish on the influx of foreign patients looking for premium medical treatments. The foreign patient load has currently rebounded to only 70% to 80% of 2019 levels. This presents a significant opportunity for the firm to leverage this segment with the anticipation of growth, particularly from China.
The company has also announced its intention to investigate potential mergers and acquisitions in countries like Vietnam, Indonesia, and Cambodia to support its core operations.
What is the Price Target for Raffles Medical Share?
Five days ago, UOB Kay Hian analyst Llelleythan Tan reiterated his Buy rating on the stock, predicting a 37% growth in the share price.
As per the consensus among analysts on TipRanks, BSL stock has been assigned a Strong Buy rating, backed by five Buy recommendations. The Raffles Medical share price target is S$1.70, with a high and a low forecast of S$1.77 and S$1.6, respectively. The price target signifies a potential change of 37.16% from the current level.
