On Thursday, JPMorgan upgraded Bangkok Dusit Medical (TASE:PMCN) Services (BDMS:TB) (OTC: BDULF) stock from Neutral to Overweight, adjusting the price target to THB33.00, up from THB31.00. The upgrade follows a period where Bangkok Dusit's shares lagged behind the Stock Exchange of Thailand (SET) index by 15% over the past three months.
This underperformance was attributed to concerns about slowing revenue growth due to high infection rates and insurance claims, as well as worries about significant shareholders selling their stakes.
Despite the market's concerns, Bangkok Dusit has demonstrated strong earnings resilience in recent quarters. The company's earnings revisions have been trending positively, supported by a diversified revenue portfolio.
According to JPMorgan, the stock's current valuation at approximately 16 times enterprise value to earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) for fiscal year 2025 is attractive compared to its peers in the regional hospital sector.
The financial firm notes that Bangkok Dusit's earnings before interest, taxes, depreciation, and amortization (EBITDA) compound annual growth rate (CAGR) is around 8%, which is appealing when contrasted with its hospital peers in the region.
The growth differential between Bangkok Dusit and Bumrungrad Hospital (BH) is expected to potentially drive a shift of investor interest toward Bangkok Dusit in the near term.
JPMorgan's upgrade to Overweight comes with an increased December 2025 discounted cash flow (DCF) price target of THB34, up from the previous THB32.
This adjustment reflects a valuation rollover and an anticipated 4-6% earnings per share (EPS) increase following a robust quarterly performance by Bangkok Dusit. The company's ability to maintain earnings momentum despite challenging market conditions has been a key factor in the revised outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.