In an Aug 7 note, Sinha and Lin maintain “overweight” on all three banks, with target prices of $43.14 on DBS, $16.20 on OCBC and $39.70 on UOB. Among the three, CLSA prefers DBS, followed by UOB and OCBC, in that order; but the house’s target price forecasts the highest upside from UOB at 37.8% against its Aug 6 closing price of $28.80.
Singapore’s banks are “ploughing ahead”, admit CLSA analysts Neel Sinha and Lin Daxin, as the trio’s results for 2QFY2023 ended June beat their estimates by 5%-17%. Among them, DBS (SGX:D05
) was the “most convincing beat of the three”, and the CLSA analysts believe higher dividends “should be a focus”.
United Overseas Bank (UOB) (SGX:U11) announced its 1HFY2023 results on July 27, while DBS and Oversea-Chinese Banking Corporation (OCBC) (SGX:O39) released their results on Aug 3 and Aug 4 respectively.
