Phillip Securities analyst Glenn Thum has maintained their bullish stance on UOVEF stock, giving a Buy rating on February 20.
Glenn Thum has given his Buy rating due to a combination of factors that suggest a positive outlook for UOB. Despite slightly lower-than-expected earnings for 4Q24 due to decreased fee income and increased provisions, the overall financial health of UOB remains strong. The bank’s net interest income (NII) benefited from a 5% loan growth, and it has announced a significant capital distribution package, including a special dividend and share buyback, indicating robust capital management.
Thum anticipates a 12% growth in FY25 earnings driven by an increase in fees, trading income, and recovery in loan growth. UOB’s strategic expansion through the integration of Citi portfolios in ASEAN is expected to enhance fee income. Additionally, the bank is poised to maintain stable NII and NIM by optimizing deposit costs and continuing to expand its loan book. With a potential increase in dividend yield, UOB’s financial strategies align with achieving its optimal CET-1 operating range, reinforcing the Buy recommendation.
In another report released on February 20, DBS also maintained a Buy rating on the stock with a S$43.00 price target.
UOVEF’s price has also changed moderately for the past six months – from $23.450 to $28.700, which is a 22.39% increase.