Company Name: OVERSEA-CHINESE BANKING CORP
| Research House: Citigroup | Price Call: BUY | Target Price: 10.30 |
Citigroup raised its rating on Oversea-Chinese Banking Corporation to buy from neutral and increased its price target to $10.03 from $9.40.
The broker upgraded its recommendation ahead of what it expects to be a “robust” first quarter result and said its revised 2012 profit forecast of $2.68 billion was 14% above the consensus estimate of $2.35 billion.
“Profits should be lifted by a strong life insurance result, and we took a positive read through from recently reported first quarter bank results, which suggested some return of loan pricing power, a benign markets backdrop for treasury and continued low provisions, with no signs of asset-quality deterioration,” Citi said in a report.
Shares of OCBC were down 1% at $8.86 and have gained 13% so far this year, versus a 21.6% rise in DBS Group Holdings and a 20% jump in United Overseas Bank.
No comments:
Post a Comment