Analysts raise target prices, dividend estimates on DBS, predicting higher valuation ahead

ANALYSTS have raised their target prices for DBS after the lender on Monday (Feb 10) posted full-year net profit that reached a record high. This points to potentially higher valuations and the bank dishing out more dividends ahead.

Maybank Securities raised its target price for DBS by nearly 10 per cent to S$51.37 from S$46.91, with a “buy” rating. RHB on Tuesday maintained its “buy” rating, and raised its target price by nearly 15 per cent to S$51.20 from S$44.70.

Shares of DBS closed S$0.53 or 1.2 per cent lower at S$44.85 on Tuesday.

Maybank said DBS was giving significant visibility on capital returns. While earnings could grow at just 1 per cent compound annual growth rate between FY2025 and FY2027, dividends could expand at 7 per cent, delivering yields higher than 6.5 per cent, it said.

Maybank upgraded its estimate for dividend per share (DPS) by 14 to 22 per cent between FY2025 and FY2027.