U11.SI Stock Today: JPMorgan Downgrade Halts Rally on January 27
The UOB share price cooled on 27 January after JPMorgan cut the stock to Underweight with a S$34 target, pausing last week’s record S$39.50 move. Shares of U11.SI fell about 2.5% as investors reassessed valuation and asset quality risks ahead of February results. We review what changed, key levels, and what could drive the next leg for United Overseas Bank. Our goal at Meyka is to keep Singapore investors focused on the data that matters.
JPMorgan’s call and the near-term reset
JPMorgan downgraded United Overseas Bank to Underweight with a S$34 price target, citing a cooler outlook after a strong run. The UOB share price ended about 2.5% lower on the day, halting momentum from the record S$39.50 set last week. Coverage and market reaction were reported by Business Times. See details: Business Times.
After a sharp rally, valuation sensitivity rose while investors watch asset quality into 2026. JPMorgan’s downgrade followed earlier positive calls, signaling mixed views across the street and a pause to reassess drivers. The Edge Singapore chronicled the shift in stance timeline. Read more: The Edge Singapore.
Valuation, yield and core fundamentals
On trailing numbers, UOB trades around 11.0x P/E and 1.31x P/B, with a 12‑month dividend yield near 5.75% on S$2.27 per share. Book value per share sits at S$30.40. For income-focused investors, the UOB share price now embeds an attractive cash yield, while multiples remain near sector averages for Singapore bank stocks.
Return on equity is about 11.9%, supported by steady fee income and loan growth in the region. FY2024 revenue grew 5.2% and EPS rose 6.6%, even as operating cash flow was weak on balance-sheet timing. Ongoing buybacks add support, but the UOB share price will likely track earnings delivery and credit costs across Singapore, Malaysia, Thailand and Greater China.
Technicals suggest overbought, levels to monitor
Trend metrics are stretched: RSI near 78, ADX around 36 shows a strong trend, and price sits above the 50‑day and 200‑day averages at S$34.995 and S$35.249. That setup argues for consolidation. The UOB share price may need cooling before another test of highs, as momentum indicators unwind from overbought readings.
Record resistance stands at S$39.50. Initial support sits around S$38.10 from the recent session low, then the 50‑day moving average. A model monthly projection near S$36.92 offers a deeper pullback marker. For traders, the UOB share price staying above S$36.90 keeps the uptrend intact, while a close below invites a range reset.
Into February: catalysts and scenarios
Fourth-quarter and FY results are due on 24 Feb 2026. We will track net interest income direction, credit cost guidance, fee momentum, and management remarks on buybacks and dividend policy. For long-term holders, clarity on asset quality and capital buffers will shape how the UOB share price responds post-results.
Singapore bank stocks still reflect safe-haven flows, but rates and credit cycles drive medium-term returns. If guidance softens, sector multiples could slip toward book. If credit costs stay benign and fees improve, yield plus growth could re-rate. The UOB share price will likely mirror that sector path into mid-2026.
Final Thoughts
JPMorgan’s Underweight and S$34 target cooled a hot tape, with the UOB share price giving back about 2.5% after a record S$39.50. Valuation sits near 11x earnings and 1.31x book, while a 5.75% yield offers income support. Technicals look stretched, so patience near supports around S$38.10 and the 50‑day average makes sense. Into 24 Feb, watch credit costs, fee trends, and capital returns. For long-term investors in Singapore bank stocks, steady ROE and disciplined risk management remain the key filters before adding on dips. Stay data-driven and size positions prudently.
FAQs
Why did the UOB share price drop on 27 January?
Shares fell about 2.5% after JPMorgan downgraded United Overseas Bank to Underweight with a S$34 target. The call paused a strong rally that pushed the stock to a record S$39.50 last week. Investors used the news to lock in gains and reassess near-term risks around valuation and asset quality.
Is the UOB share price expensive after the recent rally?
On trailing metrics, UOB trades near 11.0x P/E and 1.31x P/B with a roughly 5.75% dividend yield. Those levels are not stretched versus regional peers, but momentum indicators are overbought. Many investors may prefer entries closer to the 50‑day average or the S$36.90 to S$38.10 support band.
What are the key catalysts for UOB in February?
Fourth-quarter and full-year results on 24 Feb 2026 are the main drivers. Watch net interest income trends, credit costs, fee income recovery, and updates on buybacks and dividends. Clear guidance on asset quality could steady sentiment and set the next move in the UOB share price.
How does the downgrade affect Singapore bank stocks?
One downgrade does not change the sector outlook, but it can reset expectations. If more brokers turn cautious, multiples across Singapore bank stocks could compress. Conversely, stable credit costs and resilient fees at results season would likely support valuations and limit spillover pressure.
Is UOB suitable for income investors now?
With a trailing yield near 5.75% and a history of steady payouts, UOB appeals to income investors. Still, price entry matters. Consider adding on weakness toward support levels, and reassess after results on 24 Feb for clarity on dividend policy, earnings quality, and credit cost guidance.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
