Monday, August 25, 2014
STI by DBSV: Post results, EPS growth for STI is decent at 8.4% for FY14F and 8.8% for FY15F. This compares favourably to the last two years’ growth of +3% (2012) and -1%(2013). With the potential halt to downward earnings revision coupled with the high single digit EPS growth, this should support the STI at 3,250 ( 13.7x 12-mth forward PE) . on a pullback. The STI could head towards 3500 or 14.48x (+0.5SD) in the event that earnings revision trend turns positive in subsequent quarters.