$OVERSEA-CHINESE BANKING CORP(O39.SI)$ is the most undervalued and oversold of the 3 Singapore Banks. It is still the 2nd largest bank in Singapore by market capitalisation and occupies 2nd position in $STI ETF(ES3.SI)$ at 13.61% weightage.
In fact, 6 Financial analysts are in agreement that OCBC is in the BUY zone. The highest Target Price at 14.95 by UOB Kay Hian and the lowest at 13.90 by RHB Investment.
With interest rates rising, OCBC will certainly benefit from Net Interest Margin. A 25bps rate hike over a 12 month period would boost OCBC's Net Interest Margin by 4 to 4.5 bps and Net Profit by 3%. With a projection of 3.4% by end 2022 and 3.8% rate interest, loan yields should continue to improve to 2023.
Currently there is much concern on recessionary pressures by investors and that is why OCBC share price has been trending downwards.
However as a long term investor, I view this as a fantastic opportunity to buy more shares of OCBC. To me, $OVERSEA-CHINESE BANKING CORP(O39.SI)$ ticks all the fundamentals of a quality stock. It is profitable, has a rock solid balance sheet and an excellent management team. Best of all $OVERSEA-CHINESE BANKING CORP(O39.SI)$ pays me steady and regular dividends year after year. How good is that!
Go Long Go Strong Go OCBC! 🚀🚀🚀🌕🌕🌕💰💰💰🎉🎊🎉
@Daily_Discussion @TigerStars @CaptainTiger @MillionaireTiger
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Thanks for sharing
[smile]