UOB's Stock Likely Remains Value Play Among Peers

Dow Jones
08/10

0249 GMT - United Overseas Bank's stock remains a relative value play versus its Singapore banking peers, leading Macquarie Capital's Jayden Vantarakis to retain an outperform rating on the lender. UOB shares have a forward price-to-book ratio of 1.3 times and a 48% discount to its local peer average, the analyst estimates. Improving momentum in its wealth franchise could be an important driver for the stock, he says. However, its asset quality remains a key risk, as lumpy commercial real-estate non-performing loans continue to weigh, says the analyst. Still, Macquarie raises its target price 3% to 46.57 Singapore dollars, partly to factor in a lower cost of capital. Shares last ended at S$43.30.

 

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