Monday, May 4, 2015

Brokers' Take: 'Buy' calls on OCBC follow its Q1 results

"BUY" calls have been placed on OCBC shares following the release of the bank's first-quarter FY2015 earnings results.
Maintaining its "buy" call on the stock, RHB Research said it had met expectations but loan growth and net interest margin slippage was disappointing.

"Still, we maintain BUY with a S$11.70 target price (10 per cent upside) as OCBC is making progress with its Greater China strategy, as evident by its improved funding position and growth of its wealth management and treasury businesses. Also, its asset quality remains solid," said RHB Research.

It added that actual integration of OCBC Wing Hang's China operations is expected to start in the second half of 2015, and this would provide a further catalyst for growth.

No comments:

Post a Comment