Analysts raise target prices, dividend estimates on UOB as they get positive on earnings outlook
Maybank forecasts return on equity to increase, thereby driving higher valuations
ANALYSTS have raised their target prices for UOB after the lender on Wednesday (Feb 19) posted full-year net profit that reached a record of S$6.05 billion.
It also announced a S$3 billion package to distribute surplus capital over the next three years, through special dividends and share buybacks.
Maybank Securities raised its target price for UOB by nearly 15 per cent to S$44.32 from S$38.75, with a “buy” rating. RHB maintained its “buy” rating, and raised its target price to S$41.60 from S$40.20.
OCBC investment research maintained its “hold” rating, but raised its fair-value estimate of the stock to S$41.50 from S$37.50. Morningstar also raised its fair-value estimate for UOB to S$41 from S$40.
Shares of UOB closed S$0.07 or 0.2 per cent lower at S$38.58 on Wednesday.
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