According to a 28 Apr 2017 analyst report by DBS Research, Hong Leong Finance might have a M&A potential after MAS’ rule regulation on finance companies in mid-Feb 2017 which apart from lifting the limits on uncollateralized loans, had also liberalized existing policy to allow a foreign takeover of a finance company here. DBS Research noted that Hong Leong Finance is the largest of the three finance companies in Singapore and hence is poised to benefit from the ruling.
DBS Vickers has maintained a “Buy” rating on Hong Leong Finance with a $3.20 target price. A minimum $3.87 price target was also set for Hong Leong Finance stock under an M&A scenario.
Hong Leong stock traded at $2.80 per share on 28 Apr 2017. This means an upside of 14.3% and 38.2% to the analyst’s target price and possible M&A price respectively. Again, I am ......