Reward 500 Tiger-coins$JPMorgan Chase(JPM)$ recently upgraded its ratings on Singapore’s three major banks and SGX, sending new signals to investors! It also forecasts $Straits Times Index(STI.SI)$ to reach 6,000 points over the next 12 months (previously 5,000 points). While DBS is highly valued, the trend is still upward; OCBC shows stable growth; UOB is better suited for patient investors.
Let’s check how JPMorgan expects for major banks and SGX!
1. $DBS(D05.SI)$ DBS: PT raised to $70, and expected to reach “overvalued” by December 2026.
Quarterly cash dividend commitment: SGD 0.66 per quarter in FY2025, SGD 0.72 per quarter in FY2026 (accounting for 82% of FY2027 EPS).
Expected CET-1 growth: 207bps/year in FY2025–FY2027, ROE 16.1%, RWA 4%.
Wealth management fee growth forecast: 13% in FY2026, 9% in FY2027, with a five-year CAGR of 13%.
Total return forecast: ~7.2% in FY2026, ~7.5% in FY2027 (in SGD terms).
2. $OCBC Bank(O39.SI)$: Rating upgraded to Overweight.
Multi-brand financial group (Wing Hang, Bank of Singapore, Great Eastern, Bank of Ningbo), capital likely used for buybacks rather than large dividend increases.
FY2025 ROA 1.13%, leverage 11x, ROE below DBS but above UOB.
Suitable for investors seeking a reasonably priced growth (GARP) option.
3. $UOB(U11.SI)$: Rating upgraded to Neutral.
Risks: Asset quality issues, high non-performing loans (NPLs), increased credit risk.
FY2026 P/E 10.4x, P/B 1.13x, ROE 11.6%, short-term share price may be volatile.
4. $SGX(S68.SI)$: Rating upgraded to Overweight, target price $18.50.
Benefits from government efforts to develop the equity market, higher IPO activity, regulatory adjustments, and crypto perpetual product innovations.
Expected average daily trading volume (ADV) FY2026–FY2028: $1.6B–$1.8B, three-year EPS CAGR ~8%.
Current dividend payout ratio below 70%, leaving room for further upside.
As 2025 comes to a close, are you ready to adjust your positions?
Will you continue holding the three major banks?
Is SGX a good choice for you?
Do you expect the STI to reach 6,000 points?
Leave your comments to win tiger coins!
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Comments
SGX $SGX(S68.SI)$ 在跑赢大盘长大对我来说很突出。在政府支持、IPO活动的改善和产品创新的帮助下，其增长前景看起来更加稳固，更高股息的潜力使其成为多元化投资组合的有用补充。
STI能否达到6,000点将取决于全球利率趋势，但修正后的目标强化了看涨观点。目前，我会持有主要银行，并考虑在进入2026年时加入新交所。
@Tiger_SG @Tiger_comments @TigerStars
JPMorgan's upgrades are a powerful affirmation of the conviction I held in these 4 stocks all along.
Can the STI Index reach 6000?
I believe that it is possible due to the expected increase in liquidity driven by the anticipated rate cuts by the Feds, which could push more funds into Singapore.
Seeing Singapore's banks and SGX grow and thrive fills me with a special pride , knowing that I have been part of their journey as an investor.
@Tiger_SG @TigerStars @Tiger_comments @TigerClub @CaptainTiger
Check them in the history - “community distribution“
Holding the three major SG banks for growth or dividends makes sense, but assessing their growth outlooks and monitoring sector trends for potential shifts is essential, especially if interest rates stay favorable
Investing in SGX (S68) offers diversification into Southeast Asia, particularly in stable sectors like REITs and financials, but regional economic conditions should be closely monitored for strategic positioning
Reaching 6,000 points is achievable if global economic growth supports key sectors in Singapore, with the STI needing strong performances from real estate, financials, and tech, though this will take time。。。
Overall, evaluating sector trends, interest rates, and regional conditions is key for making informed adjustments as 2025 ends
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