Companies listed on SGX United Overseas Bank (SG: U11) and StarHub Ltd. (SG:CC3) will report its first quarterly earnings for 2023 on May 4.
Prior to their respective announcements, analysts had given UOB a Moderate Buy rating, while StarHub had been assigned a Hold rating. According to analysts, both stocks are expected to experience a more than 15% increase in their share price.
Let’s take a look at these companies in detail.
United Overseas Bank (UOB)
UOB is a Singapore-based multinational banking corporation that offers a diverse selection of banking and financial planning products. The bank’s main focus is on the Asian markets.
UOB is ready to launch its Q1 2023 Profits report with an anticipated EPS of S$0.9. This figure represents a significant increase from the S$0.54 EPS reported over the corresponding period in 2022.
The bank recently released its first quarter business update and the numbers did not disappoint investors. The lender experienced growth across its wholesale, global markets and retail divisions, leading to a new record core net profit of S$1.6 billion. During the quarter, the bank experienced a 56 basis point expansion in its net interest margin, resulting in a 43% increase in net interest income of S$2.4 billion. This helped offset negative loan growth, as large companies reduced their lending.
Looking ahead to 2023, the bank remains very bullish on Asian markets and is well positioned to capitalize on the region’s economic rebound this year, given its strong balance sheet.
What is UOB’s target price?
Based on six Buy and six Hold recommendations, the rating consensus for action U11 on TipRanks it is a Moderate Buy. The average price target is S$33.17, with an upside potential of almost 17.4%.
StarHub Limited
StarHub is a Singapore-based telecommunications company that provides world-class communication, entertainment and digital solutions.
The company will report its Q1 2023 Profits on May 4. According to TipRanks, the EPS consensus forecast is S$0.02. Sales forecast for the quarter is S$564 million, down from prior quarter sales of S$1.27 billion. The company forecasts service revenue growth of 8% to 10% in 2023.
Analysts are generally neutral on the stock as they expect the company to drive bottom line growth over the medium to long term.
What is the target price for StarHub?
According to TipRanks, action CC3 has a Hold rating based on one Buy recommendation versus four Hold recommendations.
The average price prediction for the share is S$1.15, which is 13.5% higher than the current price level. The price target ranges from a minimum of S$1.05 to a maximum of S$1.35.
Conclusion
While analysts are optimistic about UOB’s results due to increased interest income and a stronger balance sheet, they are less optimistic about StarHub’s prospects, as the company is expected to experience a decline in both sales and revenue. earnings during the quarter. Nonetheless, StarHub maintains a positive outlook for its full-year figures in 2023.