OCBC upgrades Raffles Medical Group (R01.SG) to Buy from Hold as value has re-emerged following a 16.5% decline in the share price since its April 11th peak.
OCBC notes that, operationally, RMG is seeking to implement a new Hospital Information System and Electronics Medical Records System.
"We believe this would enhance RMG's efficiency and improve the quality of delivery of its healthcare services as patients' records can be easily shared between doctors, nurses and other ancillary services departments."
The house rolls forward its valuations to 29x blended FY13/14F EPS, and thus raises its fair value estimate to $3.42 from $3.22.
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