Overseas-Chinese Banking Corporation Limited, or OCBC Bank (SG:O39), is among the oldest financial institutions in Singapore. OCBC Bank has risen to become the second-largest financial services group in Southeast Asia while also earning recognition as one of the world’s most esteemed banks.
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OCBC is scheduled to announce its first-quarter earnings for 2023 on Wednesday, May 10. The forecasted EPS for the quarter is S$0.39 per share. Overall, analysts have predicted net profits for the bank to be around S$1.74 billion, which is 28% higher than last year.
UOB analyst Jonathan Koh, who has a Buy rating on OCBC shares, has projected a net profit of S$1.71 billion for the quarter. Koh believes OCBC’s loan growth will be modest, at a year-over-year increase of 1.4%, as corporate customers remain “cautious on business expansion.”
Koh has a price target of S$16.8 and sees more than a 30% upside in the share price.
On the flip side, some analysts also feel that the banks in Singapore have limited potential for an increase in net interest margins (NIMs). Additionally, there is a growing concern about asset quality risks throughout FY2023 due to the increasing likelihood of a recession in an inflationary environment.
Is OCBC Stock a Good Buy Now?
According to TipRanks’ analyst consensus, O39 stock has a Moderate Buy rating.
At an average target price of S$14.12, analysts are projecting a growth of 11.6% from the current level. YTD, the stock has been trading up by 3.35%.
UMS Share Price Target
Another Singapore-based company, UMS Holdings (SG:558), will also report its Q1 2023 earnings report on May 10. The sales forecast for the quarter is S$72 million, as compared to S$100.9 million in the previous quarter.
UMS Holdings is a manufacturer that specializes in the production of high-precision components, intricate electromechanical assembly, and final testing services.
Overall, analysts hold a cautious approach to the overall sector as the major players expect a slowdown and issue a negative outlook. Analysts are optimistic about the possibility of a robust recovery in the second half of fiscal year 2023.
558 stock has a Moderate Buy rating on TipRanks based on one Buy and two Hold recommendations. The average price target is S$1.25, which is 22.2% higher than the current price level.
