Goldman Sachs upgrades DBS (D05.SG) to Buy from Neutral; “as the only Singapore bank trading below ex-growth valuations, DBS provides a buying opportunity in our view,” says Dow Jones.

Goldman Sachs expects DBS to deliver highest earnings CAGR, accelerating ROE among Singapore banks over FY10-12, driven by strong loan book growth, potentially lower provisions.

Research house says bank’s new strategic moves taking shape, with new branches set up in China and India, new heads appointed in recent months in Singapore, other Asian markets.

Lifts target price to $16.90 from $15.90 after rolling over valuation basis to 2011, increasing 2010-2012 EPS forecasts by 2%-3%. Shares +0.7% at $13.98.