Stock Name: UOB
Company Name: UNITED OVERSEAS BANK LTD
CIMB in a Sept 16 research report says: "We appraise UOB as being the best managed of the three banks for liquidity risks. Its capital buffers are also the highest among the trio. Such dynamics means that investors associate UOB with defensiveness; UOB's YTD outperformance could be attributed to this, we believe.
"We do not disagree that UOB is the comfort stock' in the Singapore banking space; yet, if a banking crisis erupts, all financial stocks could underperform. We recently turned cautious on Singapore banks, on signs of liquidity strains in the world.
"We make no changes to our earnings estimates for now as our NPL assumptions (2.1% NPL by 2013) have partially factored in a credit cycle. Our target price remains $20.38 (1.5x P/BV, GGM). MAINTAIN NEUTRAL."
Company Name: UNITED OVERSEAS BANK LTD
| Research House: CIMB | Price Call: HOLD | Target Price: 20.38 |
CIMB in a Sept 16 research report says: "We appraise UOB as being the best managed of the three banks for liquidity risks. Its capital buffers are also the highest among the trio. Such dynamics means that investors associate UOB with defensiveness; UOB's YTD outperformance could be attributed to this, we believe.
"We do not disagree that UOB is the comfort stock' in the Singapore banking space; yet, if a banking crisis erupts, all financial stocks could underperform. We recently turned cautious on Singapore banks, on signs of liquidity strains in the world.
"We make no changes to our earnings estimates for now as our NPL assumptions (2.1% NPL by 2013) have partially factored in a credit cycle. Our target price remains $20.38 (1.5x P/BV, GGM). MAINTAIN NEUTRAL."
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