Brokers' Take

SMRT Corp | BUY

Nov 3 close: S$1.575

Target price: S$1.70

OCBC Investment Research, Nov 3

WITH the above-expectations performance in H1 FY15, and expectations of sustained earnings, we increase our FY15 and FY16 Patmi (profit after tax and minority interests) forecasts by 9.9 per cent and 2.4 per cent, respectively. Consequently, our DDM (dividend discount model)-derived fair value estimate increases from S$1.65 to S$1.70. With the recent drop of 4.8 per cent in its share price since our last update on July 31, we think the current price is attractive with a total potential upside of 16.5 per cent. Hence, we upgrade from "hold" to "buy" rating on SMRT.

Cordlife Group | UNDER REVIEW

Nov 3 close: S$1.01

Target price: Under review

AmFraser Research, Nov 3

WE are concerned that Cordlife Group (CGL) could be betting the house on its China dream. We believe the risks quite clearly outweigh the benefits and it looks like the deal is structured against CGL's favour. We also observed many questionable practices relating to corporate governance among the parties named in the deal. We are placing our recommendation and TP (target price) under review, pending the outcome of the extraordinary general meeting and the upcoming Q1 FY15 results due on Nov 11, 2014.

DBS Group Holdings | BUY

Nov 3 close: S$18.82

Target price: S$21

DMG & Partners Research, Nov 3

DBS's Q3 FY14 core earnings rose 4 per cent quarter on quarter, helped by healthy income growth. While provisions were higher, nine-month FY14 credit cost fell 12 basis points year on year to 24 basis points. Its share price has appreciated 10 per cent since end-June 2014 and may outperform its peers over the next 12 months given its broad-based revenue growth, healthy asset quality and positive impact from the prospect of rising US interest rates in H2 FY15. Maintain "buy" and S$21 target price (14.6 per cent upside).

BUY

Target price: S$23.40

Maybank Kim Eng Research, Oct 31

LOAN guidance lowered by 1-2 percntage points to 7 per cent on slower trade loan growth. NIM (net interest margin) likely to be intact. Asset quality sound with no signs of stress. DBS still our top sector "buy". Target price based on 13x FY15 estimated EPS (earnings per share). Key beneficiary of rising rates.

Compiled by Kenneth Lim

Disclaimer: All analyses, recommendations and other information herein are published for general information. Readers should not rely solely on the information published and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.