OCBC: UBS maintain Buy with TP $10.70. Note that near-term headwinds arising from concerns over the Euro zone economies will make it difficult for the stock to outperform in the near term.
Believe investors have turned risk averse in the near term and this will affect its wealth management margins. Concerns over the slowdown in the global economy are likely to impact both loan growth and interest rates.
However retain Buy as its long-term prospects remain bright, a relatively affluent economic region together with its strong balance sheet should allow it to grow earnings at a healthy rate. Bank stocks turn in strong performance post a GDP trough and expect the economy to trough in this cycle in 1Q12.
No comments:
Post a Comment