OCBC Bk - OCBC cut to Neutral by Goldman, cuts target to $9.80

Stock Name: OCBC Bk
Company Name: OVERSEA-CHINESE BANKING CORP
Research House: Golman Sachs

Goldman Sachs downgrades OCBC (O39.SG) to Neutral from Buy, cuts target price to $9.80 from $10.40 after rolling over valuation basis to 2011, trimming 2011-2012 earnings estimates by 3%-9%, says Dow Jones.



Goldman Sachs expects near-term earnings momentum to slow on net interest margin pressure, limited room for provisions to come off further as these already low.

But says longer-term prospects favorable given strength in wealth management, high exposure to insurance business via Great Eastern Holdings (G07.SG): “Together with its Great Eastern life insurance business, which, like its BoS (Bank of Singapore) platform, should benefit from increasing affluence in Asean, OCBC should be able to gain revenue synergies by cross-selling a broader suite of products into its current strong personal deposit customer base and commercial SME clients to increase earnings.”



Shares +1.0% at $8.76.