malaysiang
KUALA LUMPUR, Public Investment Bank Bhd (PIVB) remains optimistic about AMMB Holdings Bhd’s (AmBank) long-term prospects, driven by steady operational improvements as the group embarks on its new ‘Winning Together (WT29)’ strategy.
In a research note, PIVB stated that while it maintained its earnings estimates, it has raised its dividend-based target price (TP) to RM5.30 from RM4.80.
“We retain our ‘buy’ recommendation, as banking stocks continue to attract strong investor interest,” PIVB said.
Similarly, Hong Leong Investment Bank Bhd maintained its ‘buy’ call on AmBank, increasing its Gordon Growth Model-derived TP to RM5.75 from RM4.60.
Although the results were largely in line with expectations, Hong Leong revised AMMB’s financial year 2025-2026 profit forecast upwards by two to three per cent, citing lower net credit cost based on new management guidance.
“We expect a slight widening of the net interest margin in the next quarter as management optimises funding costs and fixed deposit competition
remains benign.
‘AMMB is focused on growing its higher-yielding business banking franchise and is selective in mortgage origination,” it said.
Additionally, Hong Leong anticipates a rebound in credit growth, given a strong lending pipeline in both business and wholesale banking.
RHB Investment Bank Bhd also maintained its ‘buy’ recommendation for AmBank, raising its TP to RM5.90 from RM5.50.
The bank continues to view AMMB as a sector ‘top pick’ due to its undemanding valuation and capital management potential.
Source: BERNAMA News Agency
