$DBS(D05.SI)$ $UOB(U11.SI)$ Following DBS’ earnings release on Thursday (Apr 30) – where its net profit rose 1 per cent year on year to S$2.93 billion and surpassed Bloomberg analysts’ expectations – CGSI upgraded the bank to “add” from “hold”, raising its target price to S$63.80 from S$60. “We turn more constructive on DBS after its analyst briefing on Apr 30, due to its resilient net interest income (NII) and stronger growth in its wealth management fees,” said CGSI analyst Tay Wee Kuang. Source: https://www.businesstimes.com.sg/companies-markets/analysts-upgrade-dbs-lift-target-price-improved-forecasts-wealth-franchise
My take: 1. I think OCBC will close at S$22.50 on 9 May. 2. I think UOB will close at S$37.85 on 8 May. 3. Both UOB and OCBC will match DBS’s wealth management fee surprise.
$UOB(U11.SI)$ Time for UOB to rise up and regain the $38.50-$39.50 valuation that is more reflective of its fair value. A number of performance metrics have its fair value pegged at $43+. Great dividends and great valuation upside (given that it is still a good 8% from ATH)
$DBS(D05.SI)$ $UOB(U11.SI)$ Think both DBS and UOB have lots of room to grow. Healthy dividends, steady profits and fallen from ATH by some extent so clearly lots of valuation upside!