SINGAPORE, April 27 (Reuters) - Swiss bank UBS on Monday reiterated its "buy" recommendation on Singapore's DBS <DBSM.SI> and increased the target price to S$11.30 from S$10.30.
"In a recession, (lending) margins tend to shrink. However, we believe this time they will remain resilient as DBS is able to exert its pricing power to widen the spread," UBS said in a report.
The Swiss bank also it believed the Singapore economy has bottomed in the first quarter and noted that bank shares tended to rally once the trough was reached.
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