Phillip Securities analyst Paul Chew upgraded the rating on Raffles Medical Group (RAFLF – Research Report) to a Buy today, setting a price target of S$1.02.
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Paul Chew has given his Buy rating due to a combination of factors that highlight Raffles Medical Group’s strong financial performance and growth potential. The company’s FY24 revenue and PATMI surpassed expectations, driven by a significant rebound in elective surgeries and an increase in foreign patients in Singapore, as well as a recovery in patient volume in China. This growth was complemented by stable staff costs and a break-even point in their insurance operations, leading to improved margins.
Furthermore, the company has raised its FY25e PATMI forecast by 38%, reflecting the robust performance of its healthcare services in Singapore. With a strong net cash position and plans to increase its dividend payout ratio and share buybacks, Raffles Medical Group is well-positioned for future growth. The potential for breaking even in China by FY26e and the expansion into new markets like Indonesia further support the positive outlook, justifying the Buy rating.
According to TipRanks, Chew is ranked #917 out of 9389 analysts.
In another report released today, DBS also upgraded the stock to a Buy with a S$1.12 price target.