“Sustained q-o-q improvements in operations and asset quality, underpinned by the re-opening of regional economies, have led to a more optimistic guidance on credit cost and loan growth. Our revised earnings estimates point to a healthy return on equity (ROE) recovery, while its robust capital provides room for higher dividends further ahead. These, we believe, will support a share price re-rating. Our target price reflects 1.05 times price to book value (P/BV),” notes RHB.
Oversea-Chinese Banking Corporation (OCBC) is gaining momentum in its post-pandemic recovery, with analysts across six research houses recommending “buy” or “add” on the bank.
RHB Group Research upgraded OCBC to “buy” from “neutral” with a higher target price of $12.50 from $9.50.
