“We see upside led by earnings delivery and multiples expansion,” say the analysts in their Jan 16 note, where they’ve initiated coverage on UOB Kay Hian with an “outperform” call and $3.12 target price, which is based on 10.5 times FY2027 earnings, versus the 13.1 times average multiple accorded to local listed financial services peers.
As the Straits Times Index (STI) makes new highs regularly amid higher volumes, a direct beneficiary is UOB Kay Hian Holdings (SGX:U10
) , one of the largest brokers in town. Besides its Singapore base, the brokerage has a significant presence in Hong Kong and Malaysia.
From the perspective of Macquarie analysts Jayden Vantarakis and Hanel Tan, UOB Kay Hian is one of the Singapore-listed small and mid caps that offers “direct leverage to wealth and broadening market participation” as retail investors become more active in trading local stocks, including other small and mid caps.
