Phillip Securities analyst Glenn Thum maintained a Buy rating on OCBC (OVCHF – Research Report) today and set a price target of S$17.90.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Glenn Thum has given his Buy rating due to a combination of factors that highlight OCBC’s financial resilience and growth potential. Despite a slight earnings miss in 4Q24 due to increased expenses and allowances, OCBC’s overall financial health remains strong. The bank’s total non-interest income saw an 18% year-over-year increase, driven by robust fee, trading, and insurance income. Additionally, OCBC’s wealth management sector experienced significant growth, with a 13% increase in total income, contributing substantially to the bank’s overall revenue.
Moreover, the bank’s strategic initiatives, such as the two-year S$2.5 billion capital return plan, including a special dividend and share buyback, reflect a commitment to returning value to shareholders. The attractive dividend yield of 6.1%, including the special dividend, further supports the Buy rating. Thum anticipates continued growth in OCBC’s wealth management and trading sectors, alongside a recovery in loan growth, which is expected to offset the challenges posed by declining net interest margins and rising expenses.
In another report released today, HSBC also upgraded the stock to a Buy with a S$19.00 price target.