OCBC kept at "add" with $11.85 target price by CIMB

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

Research House: CIMB

Price Call: BUY

Target Price: 11.85

SINGAPORE (Feb 12): CIMB is maintaining its "add" rating on OCBC on grounds that the bank's 4Q earnings of $791 million was within its expectations of $822 million but below the street's $906 million.

It also raised its price target to $11.85 from $11.44 after taking into account that the re-rating catalysts of rising rates and potential Wing Hang Bank synergies have yet to set in during the quarter.

CIMB observed that even though a tougher credit environment is to be expected, OCBC's 4Q total provisioning levels should not be taken as a new normal.