Phillip Securities analyst Glenn Thum maintained a Buy rating on DBS Group Holdings (DBSDF – Research Report) yesterday and set a price target of S$46.90.
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Glenn Thum’s rating is based on several key factors influencing DBS Group Holdings’ performance. The company reported a solid adjusted PATMI for 4Q24, aligning with expectations, and showed a notable increase in dividends, with a 22% rise in quarterly DPS and plans for additional capital returns in 2025. The rise in net interest income, driven by an increase in net interest margin and loan growth, alongside a 21% growth in non-interest income led by wealth management fees and trading income, indicates strong performance.
Furthermore, despite a projected decline in PATMI for FY25 due to increased taxes, the company’s capital return initiatives, including a significant dividend yield and share buyback program, offer attractive returns to shareholders. The upgraded target price and the anticipated continued growth in non-interest income, supported by market volatility benefiting trading income, also contribute to the positive outlook. These factors collectively support Glenn Thum’s Buy rating for DBS Group Holdings, reflecting confidence in its financial health and future prospects.
Thum covers the Financial sector, focusing on stocks such as Bank of America, JPMorgan Chase & Co., and Wells Fargo. According to TipRanks, Thum has an average return of 14.4% and an 80.88% success rate on recommended stocks.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a S$49.80 price target.