MIDF Research upgrades KPJ to Buy, raises target price to RM6.98

Business & Markets 2012
Written by theedgemalaysia.com
Monday, 30 July 2012 09:10

KUALA LUMPUR (July 30): MIDF Research has upgraded KPJ
HEALTHCARE BHD [] to a Buy at RM5.88 with a revised target price of
RM6.98 (from RM5.10).

In a note Monday, the research house said the new target price was
derived from 25x PE multiple of FY13F EPS, based on peers average PE
multiple.

“The share price of KPJ has seen a strong positive movement over the
last few months, which we believe this has been part of the positive
spillover effect from the dual listing of IHH Healthcare Berhad recently.
“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,” it said.