JP Morgan see downside to OCBC's results following 'soft' results from Great Eastern
$JPMorgan(JPM.US$ analysts have maintained their "underweight" rating for OCBC and lowered their target price to $11.50 from $13.50.
They believe the bank is at risk of weakness over the next three to six months as the economy slows and downside to earnings is expected.
![JP Morgan see downside to OCBC's results following 'soft' results from Great Eastern](https://ussnsimg.moomoo.com/feed_image/71565416/db532c949ba933bd81b8ec6347fe3b5e.png/bigmoo)
Great Eastern's 1QFY2023 earnings accounted for 12% of the analysts' earnings estimates for OCBC, which is below the average of 16% for the past eight quarters. The analysts stated that OCBC's weaker asset quality should be the "largest driver" of its stock price moves and any indication of non-performing loan (NPL) formation would lead to sharp de-rating.
The analysts expect OCBC's upside to be limited and any share price movements will be a "function of pricing and fit".
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