The SGX-listed United Overseas Bank (SG:UOB) share price has been down by 8% in the last six months. Analysts are moderately bullish on the stock and believe the decline presents a good opportunity for investors to grab more shares.
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Based in Singapore, UOB is a leading bank with global operations in 19 countries. The bank provides a wide range of personal banking and financial planning products and services.
In its first quarter 2023 earnings report, UOB posted a net profit of S$1.6 billion, which was 74% higher than the same period last year. The net interest income also grew by 43% during the quarter. The bank delivered record numbers in Q1 and is now focused on fortifying its balance sheet to navigate safely through various market cycles.
Analysts are Bullish
Over the last two months, analysts have expressed their positive opinion about the stock.
Analysts at RHB Capital feel the bank is well-placed to face the economic headwinds supported by its acquisition of Citigroup’s consumer banking business. RHB also stated that the market has already factored in concerns regarding a potential reversal in the trajectory of net interest margin (NIM) and pressures on asset quality.
RHB is highly bullish on the acquisition of Citi’s business, which was an important milestone for the company to strengthen its position outside Singapore. RHB Capital reiterated its Buy rating on the stock 20 days ago, predicting an upside of 16%.
Recently, four days ago, Andrea Choong from CGS-CIMB reiterated her Buy rating on the stock, forecasting a growth rate of almost 20%.
What is the Price Target for UOB Stock?
According to TipRanks’ rating consensus, U11 stock has a Moderate Buy rating based on five Buy, and six Hold recommendations.
The average price target is S$32.54, with an upside potential of almost 17%.
Conclusion
UOB feels that the bank is strategically positioned to capitalize on Asia’s economic rebound. Their robust balance sheet, supported by solid capital and liquidity positions, puts them in a favorable position to leverage this opportunity.
Analysts have rated the stock as Moderate Buy.
