In their Feb 21 report, the analysts note that the cost of funds for the bank and sector is moving up, in line with the higher US Federal Reserve (Fed) fund and the Singapore dollar interbank rates. The large gains from lag in deposit repricing is over, they add.
JP Morgan has maintained “neutral” on DBS Group Holdings (SGX:D05
) with an unchanged target price of $37 as it sees late cycle dynamics limiting the bank’s upside.
Analysts Harsh Wardhan Modi, Daniel Andrew Tan and Gaurav Khandelwal expect DBS to trade in range, with almost the entire return on the stock to come from dividend yields in the next 12 months, aside from limited capital gains from current levels.
