Hong Leong Investment Bank downgraded IHH Healthcare Bhd to ‘hold’ from ‘buy’ after Asia’s largest hospital operator called off an acquisition plan.
The stock had been fully valued and offered limited upside, having reached an all-time high of 3.48 ringgit last November, Hong Leong said in a report on Monday.
IHH terminated the acquisition of a 65 percent interest in Turkey-based Jinemed Saglik Hizmetleri, which had a hospital and medical centre under its portfolio.
Hong Leong lowered its target price for IHH to 3.45 ringgit from 3.49. “Although we felt slightly negative, the impact on IHH is very minimal and we remain confident on its regional expansion,” said Hong Leong.
Shares of IHH rose 0.29 percent to 3.46 ringgit as of 1034 am (0234). IHH has gained 7.81 percent in the past three months, despite last reporting a 47 percent drop in its net profit for the third quarter ended Sept. 30 due to seasonal factors.
$1 = 3.0290 ringgit Reporting by Al-Zaquan Amer Hamzah in Kuala Lumpur; Editing by Anand Basu