CGS-CIMB analyst Wee Kuang Tay upgraded the rating on DBS Group Holdings (DBSDF – Research Report) to a Buy on May 9, setting a price target of S$47.90.
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Wee Kuang Tay has given his Buy rating due to a combination of factors that highlight the financial robustness and strategic initiatives of DBS Group Holdings. The company has maintained a confident outlook despite global economic uncertainties, reaffirming its guidance for flat year-on-year profit before tax for FY25. This stability is supported by a substantial management overlay in general provisions, which is deemed sufficient to handle potential stress scenarios.
Additionally, DBS’s strong capital position, with excess capital of approximately S$7.73 billion as of 1Q25, supports a sustainable capital return policy through FY25-27. The bank’s initiatives, including a S$3 billion share buyback program and consistent dividend payouts, are expected to enhance yield attractiveness and improve long-term return on equity (ROE). These strategic moves, coupled with robust income from wealth management and loan-related fees, underpin the positive outlook and justify the Buy rating.
According to TipRanks, Kuang Tay is ranked #5999 out of 9492 analysts.
In another report released on May 9, Phillip Securities also maintained a Buy rating on the stock with a S$44.50 price target.