Credit Suisse: RBC raises target price
(CercleFinance.com) - On Wednesday Royal Bank of Canada maintained its neutral rating on Credit Suisse ahead of the strategic presentation that the Swiss private bank has planned to hold on 27 October.
In a note released in the morning, RBC said aggressive actions will be required to enable the wealth manager to stabilise its franchise, regain credibility and improve performance.
The Canadian broker said that a number of options are on the table.
"CS could raise equity to fund a restructuring upfront and diluting earnings, or it could self fund changes by slowly freeing up capital, which would take longer for the shares to get credit," it said.
RBC says it has raised its target price 10% for the stock from 6 to 6.6 Swiss francs to take into account the recent rise in interest rates.
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