Analysts cut DBS target price on lower 2027 earnings, but see buying opportunity after share price slide

Detailed summary

The revisions follow similar cuts to UOB’s target prices after its results earlier this week

The revisions follow similar cuts to UOB’s target prices after its results earlier this week

[SINGAPORE] Several analysts have cut their target price on DBS after the bank’s third-quarter results, as they lowered their estimates of the lender’s earnings going forward.

The revisions follow the bank’s more cautious outlook and guidance for 2027, although analysts noted that the bank’s underlying performance remains resilient, while its recent price weakness has made it an attractive entry point.

Citi cut its target price on DBS to S$80.30 from S$86.60; CGS International reduced to S$78.90 from S$79.50; and Maybank Investment Banking Group lowered to S$80.52 from S$85.86.

Jefferies also cut its target price on DBS to S$88 from S$91; Macquarie reduced to S$76.40 from S$79.84, and RHB lowered to S$80.30 from S$81.20.

The cuts followed a similar reduction to UOB’s target price by several analysts, as shrinking lending margins and rising operating costs are projected to pressure earnings in 2027.

On Thursday (Nov 5), DBS posted a 5 per cent fall in Q3 net profit to S$2.81 billion, largely due to weak markets trading income from unfavourable market conditions.

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It then guided for 2027’s total income to grow in the mid-single-digit range, with net interest income growth in the mid-single digits, and non-interest income growth in the double digits or high-single digits, depending on market performance.

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