BTS
12-06 17:53

The latest price target from JPMorgan for DBS (D05), OCBC Bank (O39), and UOB (U11), serves as a key indicator of sector direction, making it an ideal time for portfolio adjustments as 2025 nears its end

Holding the three major SG banks for growth or dividends makes sense, but assessing their growth outlooks and monitoring sector trends for potential shifts is essential, especially if interest rates stay favorable

Investing in SGX (S68) offers diversification into Southeast Asia, particularly in stable sectors like REITs and financials, but regional economic conditions should be closely monitored for strategic positioning

Reaching 6,000 points is achievable if global economic growth supports key sectors in Singapore, with the STI needing strong performances from real estate, financials, and tech, though this will take time。。。

Overall, evaluating sector trends, interest rates, and regional conditions is key for making informed adjustments as 2025 ends

Tag :@Huat99  @Snowwhite  

JPMorgan’s Latest PT For Banks! Would You Adjust Portfolio by Year-End?

@Tiger_SG：
$JPMorgan Chase(JPM)$ recently upgraded its ratings on Singapore’s three major banks and SGX, sending new signals to investors! It also forecasts $Straits Times Index(STI.SI)$ to reach 6,000 points over the next 12 months (previously 5,000 points). While DBS is highly valued, the trend is still upward; OCBC shows stable growth; UOB is better suited for patient investors. Let’s check how JPMorgan expects for major banks and SGX! 1. $DBS(D05.SI)$ DBS: PT raised to $70, and expected to reach “overvalued” by December 2026. Quarterly cash dividend commitment: SGD 0.66 per quarter in FY2025, SGD 0.72 per quarter in FY2026 (accounting for 82% of FY2027 EPS). Expected CET-1 growth: 207bps/year in FY2025–FY2027, ROE 16.1%, RWA 4%. Wealth management fee growth forecast: 13% in FY2026, 9% in FY2027, with a five-year CAGR of 13%. Total return forecast: ~7.2% in FY2026, ~7.5% in FY2027 (in SGD terms). 2. $OCBC Bank(O39.SI)$: Rating upgraded to Overweight. Multi-brand financial group (Wing Hang, Bank of Singapore, Great Eastern, Bank of Ningbo), capital likely used for buybacks rather than large dividend increases. FY2025 ROA 1.13%, leverage 11x, ROE below DBS but above UOB. Suitable for investors seeking a reasonably priced growth (GARP) option. 3. $UOB(U11.SI)$: Rating upgraded to Neutral. Risks: Asset quality issues, high non-performing loans (NPLs), increased credit risk. FY2026 P/E 10.4x, P/B 1.13x, ROE 11.6%, short-term share price may be volatile. 4. $SGX(S68.SI)$: Rating upgraded to Overweight, target price $18.50. Benefits from government efforts to develop the equity market, higher IPO activity, regulatory adjustments, and crypto perpetual product innovations. Expected average daily trading volume (ADV) FY2026–FY2028: $1.6B–$1.8B, three-year EPS CAGR ~8%. Current dividend payout ratio below 70%, leaving room for further upside. As 2025 comes to a close, are you ready to adjust your positions? Will you continue holding the three major banks? Is SGX a good choice for you? Do you expect the STI to reach 6,000 points? Leave your comments to win tiger coins! For SG users only, Welcome to open a CBA today and enjoy access to a trading limit of up to SGD 20,000 with unlimited trading on SG, HK, and US stocks, as well as ETFs. Find out more here. Complete your first Cash Boost Account trade with a trade amount of ≥ SGD1000* to get SGD 688 stock vouchers*! The trade can be executed using any payment type available under the Cash Boost Account: Cash, CPF, SRS, or CDP. Click to access the activity Other helpful links: 💰Join the TB Contra Telegram Group to Get $10 Trading Vouchers Now🎉 How to open a CBA. How to link your CDP account. Other FAQs on CBA. Cash Boost Account Website.
JPMorgan’s Latest PT For Banks! Would You Adjust Portfolio by Year-End?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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