Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD
DMG & Partners Research in a July 11 research report says: "We are forecasting DBS 2Q11 net profit of $720 million, representing a 11% q-o-q decline from 1Q11's $807 million. This factors insequentially lower net trading income and slightly higher provisioning.
"We see net interest income remaining unexciting. As we expect SIBOR to remain soft till mid-2012, we see little catalyst driving DBS share price. We note that 1Q11 provisioning of $125 million was lower than the 2010 quarterly average of $228 million.
"Whilst we note that Singapore economic conditions remain good, we assume that DBS may book in sequentially higher 2Q11 provisions. Target price of $15.00, pegged to 1.3x 2011 book, close to the historical average of 1.35x P/B. NEUTRAL."
Company Name: DBS GROUP HOLDINGS LTD
| Research House: HSBC | Price Call: HOLD | Target Price: 15.00 |
DMG & Partners Research in a July 11 research report says: "We are forecasting DBS 2Q11 net profit of $720 million, representing a 11% q-o-q decline from 1Q11's $807 million. This factors insequentially lower net trading income and slightly higher provisioning.
"We see net interest income remaining unexciting. As we expect SIBOR to remain soft till mid-2012, we see little catalyst driving DBS share price. We note that 1Q11 provisioning of $125 million was lower than the 2010 quarterly average of $228 million.
"Whilst we note that Singapore economic conditions remain good, we assume that DBS may book in sequentially higher 2Q11 provisions. Target price of $15.00, pegged to 1.3x 2011 book, close to the historical average of 1.35x P/B. NEUTRAL."
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