Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
Research House: JP Morgan Chase
DBS is on track to deliver 27% core earnings growth in 2010 though the stock is down over 5.3% in the past 12 months; the bank is due to report 4Q net profit before the market’s open Friday.
Company Name: DBS GROUP HOLDINGS LTD
Research House: JP Morgan Chase
JPMorgan raises DBS Group’s (D05.SG) target to $24 from $18, and maintains an Overweight call. This follows an increase in its estimated normalized ROE to 12.5% from 9.7% due to a 6.0%-19% positive revision in 2010-2012 earnings expectations.
DBS is on track to deliver 27% core earnings growth in 2010 though the stock is down over 5.3% in the past 12 months; the bank is due to report 4Q net profit before the market’s open Friday.
“Investor skepticism on execution and expensive acquisitions is understandable, but we expect this to reverse as the new management delivers and stays disciplined,” JPMorgan analysts say.
The house also expects net interest margin income to expand due to a steepening yield curve. DBS shares are down 0.9% at $14.84.
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