Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Phillip Securities
Company Name: UNITED OVERSEAS BANK LTD
Research House: Phillip Securities
Phillip Securities downgrades UOB (U11.SG) to Hold from Buy, cuts target price to $20.12 vs $23.00 after broker moderates its expected premium on stock to 1.7x P/B vs 1.94x previously.
“Though earnings are largely within our expectations, and UOB financials are stronger than the two local banks, we are reducing the premium for UOB as we find the bank unable to perform exceedingly better than its peers to command this premium,” Phillip says.
Broker notes UOB yesterday reported 2Q10 net profit of $602 million, +27.9% on year, driven by lower bad debt charges rather than improvement in margins or non-interest income. Stock down 0.9% at $19.12.
“Though earnings are largely within our expectations, and UOB financials are stronger than the two local banks, we are reducing the premium for UOB as we find the bank unable to perform exceedingly better than its peers to command this premium,” Phillip says.
Broker notes UOB yesterday reported 2Q10 net profit of $602 million, +27.9% on year, driven by lower bad debt charges rather than improvement in margins or non-interest income. Stock down 0.9% at $19.12.
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