Broker's take: Citi slashes target prices for Singapore banks on Fed rate cut

CITI Research on Wednesday slashed its target prices for Singapore banks, and shaved down its earnings estimates for the trio by 4-8 per cent after the US Federal Reserve made an emergency rate cut of half a percentage point overnight in response to the Covid-19 outbreak.

Citi's move brings its target price for DBS to S$24.40, down from S$26.80. Citi's new target price for UOB is at $24.40, down from S$26, and for OCBC at $11, down from S$11.60.

Shares of Singapore banks were down Wednesday morning. As at 10.15am, shares of DBS were down S$0.26 at S$23.90, shares of UOB were down S$0.27 at S$24, and those of OCBC fell S$0.12 to S$10.53.