Research

PRDA: Positive Sector Outlook And M&A Beneficiary

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Algo Research Team

Company | Dec 16, 2022 | Views: 36

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Key Summary:

  • Positive growth trajectory in 2023 as a defensive stock
  • Beneficiary of M&A, improving industry outlook (higher gov't healthcare spending, higher BPJS tariffs)
  • Attractive valuation (38-53% upside), still underappreciated by investors

Dear readers, have you had your health check-up lately? In a volatile and downtrend market like this, we think its best to contain your stress level and do a regular testing as a precaution. After all, health comes first before wealth! Or maybe wealth is the best cure?


Putting banter aside, we believe that PRDA is one of the best defensive stocks in 2023. It has a steady growth outlook (+10-15%) with solid balance sheet (net cash), attractive valuation (13x PER, 17% ROE), potentially a beneficiary of industry consolidation (M&A) and sector improvement (higher BPJS-K rates in Jan-23, Omnibus Law 2023) and a proxy to growing digital health. 

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