Analysts Differ On KPJ Healthcare’s Outlook, Majority Stay Positive
KUALA LUMPUR, Sept 9 (Bernama) -- Analysts at investment banks have differing views on KPJ Healthcare Bhd’s outlook as the group navigates a leadership transition while pursuing its strategic roadmap and expansion plans.
As at 10.22 am, KPJ’s shares rose nine sen to RM2.70, with 3.13 million shares traded.
In a research note today, Kenanga Investment Bank Bhd (Kenanga IB) said KPJ’s strategic plan remained intact despite the ongoing search for a new president and managing director (MD) following the recent resignation of Chin Keat Chyuan.
Following a 19 per cent retracement in its share price over the past month, Kenanga IB upgraded its recommendation on the stock to “outperform” from “market perform”, citing its undemanding valuation at 10 times enterprise value to earnings before interest, taxes, depreciation and amortisation, or 1.0 standard deviation below its five-year historical average.
“We maintain our forecasts and target price (TP) of RM3.05,” the investment bank said.
Public Investment Bank Bhd also maintained its financial year 2026 (FY2026) to FY2028 earnings forecasts and TP of RM3.17, while upgrading its call on the stock to “outperform” from “neutral”.
“Following the recent share price weakness, we see an increasingly attractive risk-reward profile and hence upgrade our call on KPJ to ‘outperform’ from ‘neutral’, as we are confident that the group can continue to implement its expansion plans and long-term growth strategy,” it said.
CIMB Securities Sdn Bhd took a more cautious stance, however, lowering its TP to RM2.67 from RM4.09, saying a meaningful share price re-rating would take time and depend on the execution capabilities of the incoming MD and the transition period needed to deliver KPJ’s next phase of growth.
Meanwhile, RHB Investment Bank Bhd retained its “buy” rating, saying the stock was trading at attractive levels and was underpinned by its MediAsas differentiation.
“However, we advocate for investors to accumulate patiently and view any further clarity on the group’s new chief appointment as a near-term re-rating catalyst,” it added.
-- BERNAMA