Bangkok Dusit Medical Service
Appointment with more M&A? Outperform - Maintained Share price: Bt 82.00 Target price: Bt 102.00
Bangkok Dusit Med Service Plc (BGH)
With a larger 20% stake in Bumrungrad Hospital (BH), BGH can now consolidate BH’s accounts. We view the deal positively and believe BGH will continue to add more hospitals into the group, which would be a powerful catalyst for its share price. With higher contribution from BH, we raise our earnings forecasts and target price, which is now based on 22x CY13 P/E, a 10% premium over peers to reflect higher M&A possibilities. BGH remains one of our top picks for the Thai market. Maintain Outperform.
