Maybank Kim Eng upgrades OCBC to hold

Stock Name: OCBC Bk
Company Name: OVERSEA-CHINESE BANKING CORP

Research House: Kim Eng

Price Call: HOLD

Target Price: 8.00

Maybank Kim Eng raised its rating on Oversea-Chinese Banking Corp to hold from sell and increased its target price to $8.00 from $7.50.

“We do feel that valuations are still a little rich at this stage but a premium to peers is deserved,” Kim Eng said in a report on Singapore’s second-biggest lender.

It said OCBC’s underperformance versus peers year-to-date was unjustified and it should trade at a premium, given its strong risk management capability, growing wealth management franchise and more resilient property portfolio.

OCBC was up 0.6% at $8.75, and has gained 11% so far this year versus a 15% rise in DBS Group Holdings and a 20% jump in United Overseas Bank. The broader market  is up about 12%.