Analysts cut DBS target price on lower 2027 earnings, but see buying opportunity after share price slide
The revisions follow similar cuts to UOB’s target prices after its results earlier this week
Analysts have revised their target prices downward for DBS due to lower 2027 earnings estimates, but see the stock as a buying opportunity following a share price decline. Several brokers, including Citi, CGS International, Maybank Investment Banking Group, Jefferies, Macquarie, and RHB lowered their price targets on DBS, citing shrinking lending margins, rising operating costs, and cautious guidance for the lender's 2027 performance.
Despite these concerns, DBS's underlying earnings remain resilient, and the recent price weakness has made the stock an attractive entry point for investors. Jefferies and Macquarie point to the bank's robust net interest income and capital returns, while Jefferies' equity analysts recommend a "buy" rating. DBS shares have fallen more than 12% from their September peak, but a recent correction presents a favorable buying opportunity.
DBS has only utilized a small portion of its planned S$3 billion share buyback mandate, leaving more capital return potential.
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