Target price of $39.50 for UOB is more justifiable than its current valuation for sure - it retains solid fundamentals and excellent dividend yield

UOB's Stock Valuation Seems Decent -- Market Talk

0727 GMT - United Overseas Bank's stock valuation seems decent, reflecting asset quality risks and weaker provision coverage compared with the sector, RHB Research analysts write in a report. With general provision reserve kept at 1% of its performing loans, UOB sees it as enough protection against future asset quality deterioration. While the Singapore bank's exposure to the Middle East is limited, the broader effects are uncertain. UOB also sees its buffers as adequate after adding extra provisions as a precautionary move against Middle East-related risks. RHB maintains a neutral rating on the stock with a target price of S$39.50. Shares are 0.4% lower at S$36.56.
UOB's Stock Valuation Seems Decent -- Market Talk

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