Company Name: UNITED OVERSEAS BANK LTD
| Research House: OCBC | Price Call: BUY | Target Price: 21.30 |
OCBC Investment Research raised its target price for United Overseas Bank to $21.30 from $19.74, citing better-than-expected second-quarter earnings.
By 10:07 a.m., shares of UOB were up 0.7% at $20.09, and have gained 31.6% so far this year, compared to the Straits Times Index’s 15.9%.
UOB posted a 12% rise in its second-quarter net profit to $713 million, helped by strong fee and commission income.
OCBC raised its 2012 earnings estimate for UOB to $2.73 billion from $2.57 billion, and expects the bank’s trade finance and wealth businesses to continue growing.
UOB also announced its chaiman Wee Cho Yaw will step down next year, but OCBC does not expect this to have any impact on business strategy. Wee will be replaced by former Singapore Exchange chief executive Hsieh Fu Hua.
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