- We upgrade our rating for VHC to OUTPERFORM from MARKET PERFORM despite lowering our target price (TP) by 1% as the company’s share price has decreased 9% over the last two months.

- Our lower TP is mainly driven by our lower revised aggregate 2024F-28F NPAT-MI forecast by 6% (respective changes of -8%/-11%/-6%/-5%/-3% in our 2024F/25F/26F/27F/28F NPAT-MI forecasts).

- Our TP puts VHC’s respective 2024F/25F P/Es at 14.3x/10.5x vs its average five-year TTM P/E of 10.1x and our projected 2024F-28F EPS CAGR of 20%.

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