DBS Group Holdings gained to stay above $50 this morning following a series of target price upgrades after yesterday's 1HFY2025 report card.
"DBS surprised with a good set of results," says Carmen Lee of OCBC Investment Research, who raised her fair value from $50 to $54.
In its 2QFY2025 ended June 30, earnings reached $2.82 billion, higher than expectations of $2.78 billion.
Thilan Wickramasinghe observes that DBS was able to generate above-market trend growth across all pillars.
"We believe this is sustainable in the medium term given the self-reinforcing effects of scale and strong management execution," he says, as he upgraded his call to "buy" from "hold" along with a higher target price of $56.15 from $45.26 previously.
Tay Wee Kuang of CGS International is similarly positive.
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"We remain positive on DBS’s ability to execute on its FY2025 guidance, as well as clarity for its FY2025 to FY2027 capital return initiatives," says Tay, who has raised his target price to $54.90 from $47.90.
RHB Bank Singapore, citing the bank's management, notes that the step in annual dividend at 24 cents per share "should be" sustainable till the coming FY2026.
This "reaffirms our key thesis for the stock, ie capital returns and dividend commitments," states RHB, whose new target price is $52.80, from $47.\
As at 9.44 am, DBS shares changed hands at $50.72, up 1.95%.
