1. UOB's 2025 guidance may soften due to U.S. trade uncertainties. 2. Analysts predict slower loan growth and higher credit costs for UOB. 3. EPS forecasts for UOB cut by 3.7%-6.0% for 2025-2027. 4. Target price for UOB lowered to S$38.80 from S$43.00. 5. Shares of UOB have risen 1.7%, currently at S$35.39.
The downgrade of EPS forecasts and target prices indicates poor future performance. Historical precedent shows similar downgrades lead to reduced investor confidence.
The guidance cut for UOB signals weaker market conditions that could affect broader financial markets, including SG. As UOB is a significant entity in the region, its challenges can ripple through related sectors.
The immediate downgrade and lower guidance will likely impact investor sentiment quickly. Similar past occurrences have led to swift market reactions.