DBS - DBS cut to Hold by Citi; Lowers target to $14.40

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: Citigroup

Citigroup downgrades DBS (D05.SG) to Hold from Buy, cuts target price to $14.40 from $16.70 to factor in slower growth momentum assumptions for 2011, according to Dow Jones.



Citi says lower short-term interest rates may impact DBS more than peers (as it’s largest lender in inter-bank market). Adds Hong Kong business remains challenging, giving funding pressure, although better customer segmentation in territory will help loan growth.



On brighter note, research house says new CEO Piyush Gupta’s growth strategy beginning to bear fruit, gaining SGD-loan market share, growing non-interest income by strengthening cross-selling capabilities. Shares flat at $14.12.