United Overseas Bank appears well-positioned to benefit from trade and investment flows from shifting supply chains, according to RHB Research analysts in a note.

UOB remains optimistic on loan demand this year, with growth mainly driven by factors such as Asean, which is a connecting hub for trade, the analysts note. Potential developments regarding the U.S. are likely to be negative for trade, while possibly leading to opportunities for markets outside of the U.S., they add.

UOB has been aiming to capitalize on these markets, given the presence and investments in these regions, they say. RHB Research raises its target price on the stock to S$41.60 from S$40.20, while maintaining a buy rating. Shares are 0.3% higher at S$38.71.