DBS kept on ‘buy’ despite triple threat

SINGAPORE (Oct 10): OCBC Investment Research is keeping DBS on “buy” with a fair value estimate of $16.68 despite the Singapore banking sector facing the triple threat of a slowing economy, lacklustre loans, and challenges in several core sectors.

“While DBS has taken the biggest hit in terms of decline in share price, we believe that most of the negatives have already been priced into the stock as the share corrected from the 52-week high of $18.25 to the current level,” says OCBC lead analyst Carmen Lee in a Friday report.

Singapore’s economy is expected to see a tough period that is likely to last for a while, with growth rates potentially hitting below the 2% mark.

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