Silverlake

Silverlake: ($1.27) Swiss survey says Asian banks are more bullish than ever on IT spending Results of a recent survey published by Temenos, a Swiss-based banking software vendor, augur well for the industry. Participating banks are more bullish than ever on their IT spending in the coming year. Asian banks are the most optimistic, with 76% expecting bigger IT budgets. With core banking upgrades as a top priority for investment, this should benefit Silverlake which has a broad base of installed products across the region. An added catalyst, OCBC’s recently completed acquisition of Wing Hang Bank should increase Silverlake’s workload in the coming quarters. Meanwhile, the impending CIMB-RHB-MBSB merger in M’sia will also be positive for Silverlake to expand its platform, given that CIMB and MBSB area already its customers. Maybank-KE sees Silverlake delivering solid multi-year earnings growth. Maintains Buy with TP $1.40.