KUALA LUMPUR (Nov 30): TA Securities Research has downgraded IHH Healthcare Bhd to "sell" (from "hold") with an unchanged target price (TP) of RM5.40.

TA Securities believes the group's business will proceed as usual despite Khazanah's divestment of a 16% stake in IHH to Mitsui & Co as Mitsui has been on board for a long time.

"We understand and believe that Mitsui works very well with IHH's management and by increasing its stake further, we think that says a lot. Furthermore, IHH organisation is run professionally and has good corporate governance under the leadership of Dr Tan See Leng as its CEO," said TA Securities analyst Tan Kam Meng in a note today.

"Our FY18/FY19/FY20 earnings estimates are adjusted by 0.8%/1.5%.1.4% after making some minor housekeeping to our model," he added.

Meanwhile, Nomura AEJ Daily Research set a "buy" call for IHH shares at a TP of RM6.60.

"With the private share transfer involving the two largest shareholders of the company, we see limited impact on the operations of IHH. Healthcare is a targeted growth area for Mitsui with IHH at the core of its healthcare strategy," it said.