CGS-CIMB analyst Wee Kuang Tay reiterated a Buy rating on DBS Group Holdings today and set a price target of S$60.50.
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Wee Kuang Tay has given his Buy rating due to a combination of factors including DBS Group Holdings’ strong growth prospects across various business divisions. The bank has shown impressive performance in its non-interest income (non-II) segments, with broad-based revenue growth across different sectors and geographies. This growth is supported by net new money inflows, particularly in its wealth management business, from regions like North Asia, South Asia, and Southeast Asia.
Moreover, DBS is well-positioned to benefit from the bifurcation of capital into Asia, being one of the largest banks in the region by total assets. The bank’s stable macroeconomic environment allows for potential write-backs of credit provisions, which could lead to lower credit costs than initially forecasted. Additionally, the attractive dividend yields projected for the coming years and the potential for re-rating catalysts such as resilient net interest margins and continued non-II growth further support the Buy recommendation.
In another report released today, Phillip Securities also maintained a Buy rating on the stock with a S$58.00 price target.