Analysts trim UOB target price as margin squeeze and rising costs cloud 2027 outlook
Jefferies downgrades the bank to ‘hold’; Maybank bucks the trend with an upgrade to ‘buy’
Analysts have lowered their target prices for UOB due to concerns about shrinking lending margins, rising operating costs, and a potential earnings slowdown in 2027. Despite the bank's improving wealth management and loan growth, analysts from CGS International, Citi, Jefferies, Maybank, and RHB have cut their prices, though recommendations differ.
Maybank upgraded its position to "buy," citing strong wealth management and loan growth, while Jefferies downgraded its rating to "hold" and reduced the target price. UOB's third-quarter net profit fell short of expectations at S$1.25 billion, despite a 182.2% jump year-over-year. Analysts cited a narrowing net interest margin (NIM) and higher operating costs as key concerns.
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