UOB - UOB cut to Sell by Citi, lowers target to $17.80

Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: Citigroup

Citigroup downgrades UOB (U11.SG) to Sell from Buy, cuts target price to $17.80 from $22.05, citing earnings risks in 2011, says Dow Jones.



“We still fear net interest margin pressure ahead from low rates, flat yield curves and intense competition in Singapore, and funding pressures regionally,” says Citi.



Adds UOB also lags Singapore peers in terms of new fee-, non-interest income initiatives: “We hope to see greater progress on the fee side, where its peers are pursuing tangible strategies” in wealth management, private banking, and payments, treasury cross-selling.



Shares off 0.5% at $18.52.