Bloomberg News

Fubon Shares Rise on Bear Stearns, Goldman Sachs Lift

January 18, 2008

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.

To contact the reporter on this story: Tim Culpan in Taipei at tculpan1@bloomberg.net.

To contact the editors responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net; Tom Kohn at tkohn@bloomberg.net.


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