DBS raised the rating of Oriental Watch Group (00398-HK) from holding to buying, and at the same time raised the target price from HK$1.77 to HK$2.1. Based on expected results for fiscal year 2011, the corresponding price-earnings ratio was 6 times.

The bank said that considering the lower comparison base and performance recovery trend, it is expected that the company's earnings will achieve double-digit growth in the second half of fiscal year 2010 and fiscal year 2011. DBS also raised the company's 10-11 earnings forecast by 6% and 9%.

Oriental Watch Group closed 5.85% higher at HK$1.81.