DBS

DBS: Morgan Stanley believe the share price will rise in absolute terms over the next 30 days.
Key reasons are:
(1) On 10.4x 2012e PER, valuation is back to attractive levels (vs. 11.2x for OCBC, 10.6x for UOB).
(2) Main risk of slower global growth is later than expected pick up in rates and therefore margins.
(3) risk to Spore GDP growth from slowing global outlook, expected to have some impact on credit quality with the SME sector most at risk. DBS has less exposure here than SG peers.
(4) Disruption in EU and US means DBS can continue to benefit from Co’s diversifying their banking exposure, and from Singapore's AAA status.