Fubon Financial Holding Co. (2881) rose to its highest in almost four years in Taipei trading after Bear Stearns Cos. rated it ``outperform'' and Goldman Sachs Group Inc. lifted its price target on the stock.
Fubon, Taiwan's second-largest financial services company by market value, gained 2.9 percent to close at NT$35.50, the highest since March 11, 2004. The benchmark Taiex index added 1 percent.
The group should sustain 10 percent income growth from loans and 15 percent from net fee income in 2008 and 2009, Bear Stearns wrote in a report yesterday, when it initiated coverage on the company.
Fubon will ``benefit from robust loan growth, strong wealth management and life insurance business, and a sharp rise in Fubon Bank (Hong Kong)'s net profit.''
Bear Stearns analysts Francis Chan, Steven Chan and Jim Antos have a 12-month target price of NT$41.20 on the stock.
Goldman Sachs' Vincent Chan today raised his target price on the stock to NT$35 from NT$32.40.
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