DBS Research Group has revised earnings forecasts for stocks under its coverage up 2% for FY2021 and 3% in FY2022 in anticipation of economic recovery as the global vaccination drive unfolds and business activities pick up. It marks the first time earnings forecasts have been revised upwards since 2Q2019.
The revision follows the 4QFY2020 results announcements season, with the analysts viewing that earnings are on track to recover as economies reopen. Twenty-seven companies under DBS’ coverage reported better-than-expected results compared to seventeen that underperformed.
DBS analysts Kee Yan Yeo and Janice Chua also predict that excluding property stocks, earnings for companies under its coverage will recover back to 97% of pre-pandemic levels by end-2021 with 44.2% FY2021 EPS growth.