OCBC Investment Research

UOB upgraded to 'buy' as price rally continues

SINGAPORE (June 21): OCBC Investment Research is upgrading United Overseas Bank (UOB) to “buy” amid a share price rally that has seen shares in UOB surge by some 12% so far this month.

And the bank is poised to extend a price streak that is now heading into its 11th day.

UOB’s shares have rallied for 10 straight days, gaining over 9% from $23.96 on June 6 to close at $26.22 on June 20. As at 1pm on Friday, shares in UOB continues to ride on the momentum, trading 0.3% higher at $26.31.

CapitaLand Mall Trust to deliver higher returns in near-term, but positives already priced in: OCBC

SINGAPORE (June 6): OCBC Investment Research is maintaining “hold” on CapitaLand Mall Trust (CMT) while raising its fair value estimate by a cent to $2.33 on the faster-than-expected ramp up of Funan.  

This comes after CMT’s manager announced the impending opening of the integrated development on June 28, two months ahead of the original scheduled date.  

Sembcorp Industries could benefit from US-China trade war, says OCBC

SINGAPORE (June 4): OCBC Investment Research is maintaining “buy” on Sembcorp Industries (SCI) with a lower fair value estimate of $3.03 compared to $3.13 previously.

The fair value cut comes on the back of a lower fair values estimate for SCI’s 61%-owned marine business Sembcorp Marine (SMM), as the market continues to monitor SMM’s capital expenditure and working capital needs.

In a Tuesday report, analyst Low Pei Han notes that net gearing as at 1Q19 for SMM and SCI was at 1.47 times and 1.1 times, respectively,

OCBC drops coverage on KSH Holdings post FY19 earnings miss

SINGAPORE (June 3): OCBC Investment Research is ceasing coverage on KSH Holdings, citing “reallocation to resources” after the construction group’s latest set of financial results missed expectations on the back of poorer-than-expected margins.

OCBC says Soilbuild REIT has undemanding valuations, but still lacks catalysts

SINGAPORE (May 31): OCBC Investment Research is maintaining “hold” on Soilbuild Business Space REIT (SB REIT) with an unchanged fair value of 62 cents as the REIT continues to await rent payment due from its master lease tenant, NK Ingredients.

To recap, the distressed lanolin manufacturer is in the midst of restructuring.

SembMarine is now looking cheap but beware of the risks: OCBC

SINGAPORE (May 30): OCBC Investment Research is maintaining its “hold” call on Sembcorp Marine (SMM) while lowering its fair value estimate to $1.60 from $1.77 previously upon slashing its price-to-book valuation from 1.6 times to 1.45 times.

OCBC’s move comes post the group’s 13.2% share price correction (versus the STI’s 6.8%) since the release of its 1Q19 earnings announcement.

Golden Agri to look forward to government support amid lacklustre performance: OCBC

SINGAPORE (May 28): Golden Agri-Resources (GAR) might have seen its share price fall close to 20% since mid-April, but OCBC Investment Research analyst Low Pei Han believes that it is “still not compelling”.

“The stock is trading close to its historical mean over the past five years, which is comparatively less demanding but still not yet compelling, unless CPO (crude palm oil) prices stage a faster-than-expected recovery,” Low says in a Monday report.

ThaiBev now in better spirits so don't cash in just yet, says OCBC

SINGAPORE (May 28): OCBC Investment Research is maintaining “hold” on Thai Beverage (ThaiBev) while lowering its fair value estimate by 2 cents to $0.86 after updating its cost of equity.

This comes post the news of the group’s associate Fraser and Neave’s (F&N) planned acquisition of Starbucks Coffee in Thailand through a partnership with Maxim’s Caterers.

In a Tuesday report, analyst Deborah Ong says she is positive on this development as the acquisition extends ThaiBev’s presence and product portfolio through its collaboration with F&N.

Strong margins & China listing to support Wilmar's share price after a decent 1Q, say analysts

SINGAPORE (May 17): RHB Research and UOB Kay Hian are maintaining their “buy” calls on Wilmar International with target prices of $3.94 and $3.90, respectively, while OCBC Investment Research keeps its “hold” call on the stock with a higher $3.66 fair value estimate.

This comes after the plantation group reported a 26.4% rise in 1Q19 earnings to some $350.5 million, boosted by improved performance in the Tropical Oils and Sugar segments.    

Brokers unanimously positive on NetLink NBN's outlook after a satisfying FY19

SINGAPORE (May 15): OCBC Investment Research, DBS Vickers Securities and Maybank Kim Eng are maintaining their “buy” calls on NetLink NBN Trust (NLT) with the respective price targets of 95 cents, 90 cents and 83 cents.

Likewise, Phillip Capital continues to rate the trust at “accumulate” at a 93-cent price target.

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