CIMB Research raised its rating on Singapore’s United Overseas Bank to outperform from neutral, citing the stock’s minor underperformance after fourth-quarter results.
The brokerage retained its target price of $19.42. UOB shares rose 2.5% to $18.46 after rising to the highest level since September, outperforming rivals.
“We see catalysts from a better first quarter when EU debt-related losses no longer impinge on P&L (profit and loss) and another quarter of margin expansion drives topline,” CIMB said.
UOB is up 21% so far this year, while DBS Group Holdings has risen 26% and Oversea-Chinese Banking Corp advanced 15%.
Last month, UOB reported a 21% fall in quarterly profit due to lack of one-off gains.
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