Brokerages lift their STI targets as earnings drive momentum into Q4
DBS Group Research, for example, expects the STI to be at 5,850 points by the end of 2026
SGX market strategist Geoff Howie reported that some brokerages have increased their targets for the Straits Times Index (STI) in anticipation of the final quarter of 2026. The consensus 12-month target for the STI is now at 6,140 points, representing a 5.5 percent upside. This shift indicates that price targets based on individual company fundamentals have caught up with more ambitious macroeconomic forecasts.
Analysts pegged the index at 15 to 19 percent below its fair value in 2022 and 2023, but the current market landscape is different. The recent upside primarily came from companies earning more, rather than the market being cheap. DBS Group Research expects the STI to reach 5,850 points by the end of 2026. Maybank's Thilan Wickramasinghe outlines a 12-month target of 6,800 points, while UOB Kay Hian analysts set a target of 6,682 points, implying an 18 percent upside.
DBS upgraded its 12-month target to 6,110 points and raised its year-end target to 5,850 points, driven by higher target prices for index heavyweight banks and broad earnings delivery.
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