JPMorgan’s Latest PT For Banks! Would You Adjust Portfolio by Year-End?
$JPMorgan Chase(JPM)$ recently upgraded its ratings on Singapore’s three major banks and SGX, sending new signals to investors! It also forecasts $Straits Times Index(STI.SI)$ to reach 6,000 points over the next 12 months (previously 5,000 points). While DBS is highly valued, the trend is still upward; OCBC shows stable growth; UOB is better suited for patient investors.
Let’s check how JPMorgan expects for major banks and SGX!
1. $DBS(D05.SI)$ DBS: PT raised to $70, and expected to reach “overvalued” by December 2026.
Quarterly cash dividend commitment: SGD 0.66 per quarter in FY2025, SGD 0.72 per quarter in FY2026 (accounting for 82% of FY2027 EPS).
Expected CET-1 growth: 207bps/year in FY2025–FY2027, ROE 16.1%, RWA 4%.
Wealth management fee growth forecast: 13% in FY2026, 9% in FY2027, with a five-year CAGR of 13%.
Total return forecast: ~7.2% in FY2026, ~7.5% in FY2027 (in SGD terms).
2. $OCBC Bank(O39.SI)$: Rating upgraded to Overweight.
Multi-brand financial group (Wing Hang, Bank of Singapore, Great Eastern, Bank of Ningbo), capital likely used for buybacks rather than large dividend increases.
FY2025 ROA 1.13%, leverage 11x, ROE below DBS but above UOB.
Suitable for investors seeking a reasonably priced growth (GARP) option.
3. $UOB(U11.SI)$: Rating upgraded to Neutral.
Risks: Asset quality issues, high non-performing loans (NPLs), increased credit risk.
FY2026 P/E 10.4x, P/B 1.13x, ROE 11.6%, short-term share price may be volatile.
4. $SGX(S68.SI)$: Rating upgraded to Overweight, target price $18.50.
Benefits from government efforts to develop the equity market, higher IPO activity, regulatory adjustments, and crypto perpetual product innovations.
Expected average daily trading volume (ADV) FY2026–FY2028: $1.6B–$1.8B, three-year EPS CAGR ~8%.
Current dividend payout ratio below 70%, leaving room for further upside.
As 2025 comes to a close, are you ready to adjust your positions?
Will you continue holding the three major banks?
Is SGX a good choice for you?
Do you expect the STI to reach 6,000 points?
Leave your comments to win tiger coins!
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JPMorgan's upgrades are a powerful affirmation of the conviction I held in these 4 stocks all along.
Can the STI Index reach 6000?
I believe that it is possible due to the expected increase in liquidity driven by the anticipated rate cuts by the Feds, which could push more funds into Singapore.
Seeing Singapore's banks and SGX grow and thrive fills me with a special pride , knowing that I have been part of their journey as an investor.
@Tiger_SG @TigerStars @Tiger_comments @TigerClub @CaptainTiger
2. Yes banks are a key economic stock to hold
3. Yes $SGX(S68.SI)$ is a key bank stock
4. Yea the Singapore stock exchange will reach 6000 points
SGX $SGX(S68.SI)$ being raised to Overweight stands out to me. With government support, improving IPO activity, and product innovation, its growth outlook looks more solid, and the potential for higher dividends makes it a useful addition to a diversified portfolio.
Whether STI can reach 6,000 will hinge on global rate trends, but the revised target strengthens the bullish view. For now, I’d hold the major banks and consider adding SGX as we head into 2026.
@Tiger_SG @Tiger_comments @TigerStars
多品牌金融集團（永亨、新加坡銀行、大東方、寧波銀行），資金可能用於回購而不是大幅增加股息。
2025財年ROA 1.13%，槓桿11倍，ROE低於星展銀行，但高於大華銀行。
適合尋求合理定價增長（GARP）選擇的投資者。