Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
Research House: DMG
It notes, over the last 14 months the finance sector index fell 3.0% vs STI +3.9%; “we see scope for banks to ’catch up’ on the back of stabilizing earnings fundamentals.”
Company Name: UNITED OVERSEAS BANK LTD
Research House: DMG
DMG upgrades Singapore’s banking sector to Overweight from Neutral, saying “whilst net interest margin has been squeezed sequentially due to the low interest rate environment, we expect NIM to stabilize going forward. We forecast loan growth in the low teens which will contribute to net interest income expansion in FY11.”
It notes, over the last 14 months the finance sector index fell 3.0% vs STI +3.9%; “we see scope for banks to ’catch up’ on the back of stabilizing earnings fundamentals.”
DMG says its top pick is UOB (U11.SG), rated Buy with a $22.00 target, “on the back of management’s stance to more actively drive loan growth through its regional franchise.”
OCBC (O39.SG), Buy with $10.60 target, “is also attractive given its bright wealth management prospects.”
For DBS (D05.SG), rated Neutral with a $15.00 target, DMG says “its low SGD loan deposit ratio of 60% will translate to narrower-than-peers NIM in the environment of soft SIBOR.” The three banks are down 0.7%-1.7% in a weak market.
No comments:
Post a Comment