Jefferies Reiterate DBS as Their Preferred Bank Given Lowest NIM Margin Sensitivity, TP $52

Edge
02 Apr

Following reports of DBS Group emerging as the forerunner to buy a controlling stake in Indonesia’s Panin Bank on March 26, Jefferies analysts have reiterated their “buy” rating on the bank with a target price of $52. 

Analysts Sam Wong and Shujin Chen commented in December that DBS has the scope to do acquisitions and capital return at the same time, and think that the focus for the stock could shift gradually from capital return to organic growth and profit extraction from new investments. 

As a recap, Panin Bank is the 12th largest lender in Indonesia currently majority owned by ANZ and Gunawan family. The bank now trades at 0.76 times trailing book, vs. 0.9 times in Dec. Its market cap is now $3.2 billion, and DBS’s proposed 86% stake would equal $2.7 to $2.8 billion.

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