DBS

DBS: Credit Suisse downgrades to Neutral vs Outperform, cuts TP to $16.00 vs $17.70 and lower 2011-2012 EPS estimates by 6.0-9.0% driven by lower margins. Note that 3Q10 core net profit of $722m ahead of forecasts with trading, investment gains far higher vs expectations, offset partly by higher provisioning….

However cite that new CEO's strategy will take time to show results, meanwhile, loan growth is weaker than expectations (currency not helping, especially HKD) and grp seems to be going soft on the fixed rate loan strategy. Margins likely to remain under pressure, with benefits of SIBOR likely to be a 2012 story. Adds, DBS attractive for an investment horizon of 1-2 years, but shows barely any earnings growth for 2011E and lacks near-term catalyst…

Citi, CIMB and OCBC however has Buy rating for DBS, with TP of $15.90, $17.00 and $16.00 respectively. Investors could use current weakness to accumulate stock.