KUALA LUMPUR: OSK Research has upgraded its earnings estimates for five out of seven banks under its coverage.
In its research note on Friday, Nov 12, it said the upgrades were largely premised on stronger loans growth and lower loan loss provision.
'We also note that the likes of CIMB, RHB Capital and AMMB could provide more earnings upside surprises on the back of a stronger than expected capital market earnings rebound in the upcoming quarters with the strong pick up in bond origination flows.
'We are maintaining our overweight recommendations and deem any market correction as an opportunity to accumulate. Our large cap banking top picks are CIMB (BUY, TP: RM9.77), MAYBANK (BUY, TP: RM10.07) and mid-cap stock RHB Cap (BUY, TP: RM9.56). We also upgrade AMMB to a BUY with TP of RM6.90,' it said.
In its research note on Friday, Nov 12, it said the upgrades were largely premised on stronger loans growth and lower loan loss provision.
'We also note that the likes of CIMB, RHB Capital and AMMB could provide more earnings upside surprises on the back of a stronger than expected capital market earnings rebound in the upcoming quarters with the strong pick up in bond origination flows.
'We are maintaining our overweight recommendations and deem any market correction as an opportunity to accumulate. Our large cap banking top picks are CIMB (BUY, TP: RM9.77), MAYBANK (BUY, TP: RM10.07) and mid-cap stock RHB Cap (BUY, TP: RM9.56). We also upgrade AMMB to a BUY with TP of RM6.90,' it said.
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