Singapore Stock Market News

DBS - Golden Opportunity On Rising NIM

StockFanatic
Publish date: Sat, 30 Jun 2018, 09:32 AM
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Upgrade DBS to BUY from Neutral with a new SGD30.30 TP from SGD29.60, 14% upside, as we roll over valuation to 2019F book and raise our ROE assumption. Recent concerns over the US-China trade war has led to DBS' share price falling 8% over the past one month, more than factoring in its loan exposure to Greater China. At 32%, this is higher than its two peers' 20% average. The rising FFR trend remains intact, with market expecting two more rate hikes in 2H18. We forecast continued NIM widening to drive DBS' earnings.
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