Stock Name: OCBC Bk
Company Name: OVERSEA-CHINESE BANKING CORP
DMG & Partners Research in a Feb 6 research report says: "OCBC will be releasing its 4Q11 results on Feb 20. We are forecasting FY2012 net profit of $2.24 billion similar to consensus.
"Our implied 4Q11 net profit forecast of $523 million represents a 2% q-o-q improvement, which factors in a reversion from 3Q11's net trading loss, but offset by higher provisions. OCBC now trades at 1.4x P/B, which is lower than the historical average of 1.54x.
"On the back of slower 2012 Singapore economic growth, we ascribed a target Dec 12 P/B of 1.3x, which yields our target price of $8.30. We do not see any catalyst driving OCBC's share price up, and a weaker 11.5% FY2011 ROE (versus FY2010's 12.1%) will not excite investors. MAINTAIN NEUTRAL."
Company Name: OVERSEA-CHINESE BANKING CORP
| Research House: DMG | Price Call: HOLD | Target Price: 8.30 |
DMG & Partners Research in a Feb 6 research report says: "OCBC will be releasing its 4Q11 results on Feb 20. We are forecasting FY2012 net profit of $2.24 billion similar to consensus.
"Our implied 4Q11 net profit forecast of $523 million represents a 2% q-o-q improvement, which factors in a reversion from 3Q11's net trading loss, but offset by higher provisions. OCBC now trades at 1.4x P/B, which is lower than the historical average of 1.54x.
"On the back of slower 2012 Singapore economic growth, we ascribed a target Dec 12 P/B of 1.3x, which yields our target price of $8.30. We do not see any catalyst driving OCBC's share price up, and a weaker 11.5% FY2011 ROE (versus FY2010's 12.1%) will not excite investors. MAINTAIN NEUTRAL."
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