MIDF raises KPJ healthcare to ‘Buy’
KUALA LUMPUR, July 30 — MIDF Research raised its call on KPJ Healthcare Bhd to 'buy' on the back of a brighter outlook due to the firm's expansion plans and resilient growth in the country's private healthcare industry.
“Based on its proven track record, we are confident that the company's management will be able to sustain KPJ's growth momentum, maintaining its top line growth rate and preserving its profitability,” MIDF said in a note today.
The research house said KPJ's share has seen strong positive momentum in the past few months, which could have been partly due to the spillover effect from IHH Healthcare Bhd's dual listing.
“With this catalyst, we expect KPJ to no longer trade at a discount to its peers, but should fetch the same valuation to its regional peers,” MIDF added.
MIDF also raised its target price to RM6.98 per share from RM5.10 previously.
As of 0125 GMT, shares in KPJ gained 1.2 per cent against the Malaysian benchmark stock index's 0.17 per cent rise. — Reuters