United Overseas Bank upgraded to Buy from Neutral at Goldman Sachs

Goldman Sachs upgraded United Overseas Bank (UOVEY) to Buy from Neutral with a price target of S$41, up from S$35.10. The firm expects better operating income growth at United Overseas Bank, at 3% CAGR over 2023-2026, double its previous forecast, given reduced Fed cuts, more robust loan growth momentum and continued strong non-net interest income growth. Furthermore, United Overseas Bank now looks better positioned for capital returns after implementation of BASEL 4, with commitment to return excess capital of S$3B to shareholders via dividends and share buybacks. Goldman sees 15% upside to its new price target