UOB

UOB: HSBC keeps at Overweight, but lowers TP to $23.15 from $25.50. Says valuations look better now, after share price has fallen 15% from its peak on 1 Aug, wiping all its performance ytd. Notes the stock now trades at the bottom end of its trading range since end ’09, and is below its 15yr avg 1.5x P/B. Adds, further downside should be supported by a 3.8% FY12E div yield. Its FY12-13 EPS forecasts are 6-8% below consensus.
Believes the bank’s asset quality, liquidity and capital strength will stand it in good stead during uncertain macro conditions. Says, mgt also has a proven track record of steering the bank through past crises.