DBS downgraded to "neutral", target cut to $20.50 by JPMorgan

Stock Name: DBS
Company Name: DBS GROUP HOLDINGS LTD

Research House: JP Morgan Chase

Price Call: HOLD

Target Price: 20.50

SINGAPORE (April 14): JPMorgan has downgraded DBS Group Holdings to "neutral" from "overweight" and reduced its price target to $20.50 from $21.50.

JPMorgan analysts Harsh Modi and Josh Klaczek lowered their earnings estimates for the bank by 13% for 2016 and 15% for 2016 to reflect an expected drop in net interest income.

"The key driver for the stock's 28% rally in the last 12 months (versus the Straits Times Index's 9% gain) was expectations of rising rates, which are now getting challenged," they wrote in a note.