Limited upside

In the price
CIMB’s share price has risen in recent months and the upside to our target
price is currently just 6% – thus the downgrade to HOLD. There are several
possible challenges in 2H21 (risk of higher provisions, NIM compression,
lower NOII) but we think that our earnings forecasts are sufficiently
prudent to buffer against most of these risks. Our forecasts and TP of
MYR4.90 (FY22 PBV of 0.85x, ROE: 8.8%) are maintained.