To The Moon

$DBS GROUP HOLDINGS LTD(D05.SI)$ JP Morgan has downgraded DBS Group Holdings to “neutral” with an unchanged target price of $37 as it sees the group’s future earnings growth already priced in. According to analyst Harsh Wardhan Modi, JP Morgan’s global economics team is anticipating a US recession in 2023, which has implications for growth in Asia. “A probability-weighted outcome of growth/asset quality disappointment is priced in, but not enough, in our view,” says Modi. As current accounts and savings account (CASA) depositors switch to fixed deposits, DBS’s higher cost of funds should increase faster than the street’s expectations, Modi reckons, and this may imply that net interest margin (NIM) expansion may be