OCBC Bk - OCBC cut to Sell by Citi, lowers target to $8.40

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

Citigroup downgrades OCBC (O39.SG) to Sell from Buy, cuts target price to $8.40 from $9.90 on view earnings growth will be hindered by slower loan expansion in 2011, ongoing net interest margin pressure, rising operating costs as bank resumes regional expansion and hiring, says Dow Jones.



Citi says non-interest income performance also faces challenges given volatile capital market conditions; “while we expect 2H10 earnings for OCBC to be far more stable versus the 2Q volatility, with increasing macro headwinds we believe it will be challenging to return to record 1Q10 profitability level without another exceptional trading performance.”



Stock -0.1% at $8.79.