UOBKayhian on 28 Apr 2015
FY15F PE (x): 10.8
FY16F PE (x): 9.9
DBS reported net profit of S$1,269m for 1Q15, above our forecast of S$1,004m and
consensus estimate of S$1,020m. Toned down expectations on loan growth. DBS
expects trade loans to moderate in 2Q15. Management has lowered the guidance for
loan growth in constant currency terms for 2015 from 8% to 5-6%.
Maintain BUY. Our target price of S$25.08 is based on P/B ratio of 1.56x, which is
derived from the Gordon Growth Model (ROE: 11.3%, required return: 7.8% and
constant growth: 1.5%).
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