The Singapore research team at RHB Group Research has maintained its ‘buy’ rating for DBS Bank with a higher target price of $33 from $30 previously after the stock hit a 52-week high of $29 on March 30. 

The team remains bullish on DBS as a proxy to Singapore’s economic recovery, despite anticipating some selling pressure ahead of the inclusion of US-listed SEA into the MSCI Singapore Indices from May.

Their higher target price is underpinned by a lower equity risk premium of 7.5% from 8.85% previously to reflect an improving outlook, as well as a raised ROE for FY2022 to 11.5% from 11.3%.

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