Lately, analysts have been very positive about the prospects of Singaporean companies. Their strong earnings growth makes them a safe pick for investors. On the flip side, the companies also remain cautious in their outlook due to macroeconomic headwinds.
Based on this context, we have selected two stocks: the financial company Overseas-Chinese Banking Corporation (SG:O39) and the real estate firm City Developments (SG:C09). These stocks from the Singapore market have Strong Buy ratings from analysts and also have more than 10% upside potential in their stock prices.
Let’s have a look at some of the details.
City Developments Limited (CDL)
Based in Singapore, City Developments is a real estate company with a global presence in 29 countries. The company owns and manages a diverse portfolio of assets, including residential, office space, malls, etc.
The company’s stock hit a low point in early January 2023, but gained some momentum and crossed its 52-week high point as well. The stock has been trading down by 1.23% YTD.
In its last declared results for the half-year of 2022, the company’s numbers depicted its strong recovery from COVID-19. The company reversed its loss of S$18.7 million in H1 of 2021 to a profit of S$1.1 billion in 2022. The company’s revenues grew by 23.5% to S$1.5 billion. The company also recorded solid cash flow from timely divestments of properties, which will help it grow its portfolio in the coming years.
City Development Share Price Forecast
According to the TipRanks’ consensus forecast, C09 stock has a Strong Buy rating, based on three Buy and one Hold recommendations.
The average target price is S$9.4 suggesting an upside of 16.61% on the current trading price.
Oversea-Chinese Banking Corporation (SG:O39)
Oversea-Chinese Banking Corporation, or OCBC Bank, provides banking, asset management, insurance, and other treasury services. It is one of the oldest banks in Singapore.
After a shaky year in terms of share price growth, the company’s stock gained some strength after its Q3 results for 2022. In the last three months, the stock has gained 5.6%.
In its third-quarter results, the company posted an increase of 44% in its net interest income of S$2.10 billion. With the rising rates in the economy, analysts expect this trend to continue and benefit the total income of the bank. The net profit of the bank increased by 31% to S$1.6 billion. On the contrary, the net fee income fell by 20%, due to a slowdown in the wealth management business and investment activities by customers.
Moving forward, the outlook is challenging for the bank, but it remains well-positioned with its strong financial health and operational efficiency.
What is the Price Target for OCBC Share?
Based on seven buy ratings, OCBC stock has a Strong Buy rating on TipRanks. The OCBC target price is S$14.92, implying a change of 14.6% from the current price level.
Conclusion
The last quarter’s earnings reported by these companies were solid and showed their strong future potential. As both companies are all set to release their Q4 earnings in the next week, analysts are bullish and have rated the stocks as Strong Buy.
