Credit Suisse: shares rise after Barclays upgrade
(CercleFinance.com) - Shares of Credit Suisse rose on Tuesday after Barclays upgraded the stock to "equal weight" from "underweight".
Barclays, which maintains a target price of 8.5 Swiss francs, cited several reasons for upgrading the stock, noting in particular that European banks have become "too cheap to ignore".
However, the primary reason for the upgrade is the current valuation level, the analysts said.
"The shares are trading at 0.54x TNAV for an underlying RoTE of 6.8% in 2022e, and we do not see risk to capital in the near term”, Barclays said.
Shares of Credit Suisse gained 0.7% on Tuesday morning on the news, one of the few risers on the blue-chip SMI index. They have still lost over 27% year-to-date.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Barclays, which maintains a target price of 8.5 Swiss francs, cited several reasons for upgrading the stock, noting in particular that European banks have become "too cheap to ignore".
However, the primary reason for the upgrade is the current valuation level, the analysts said.
"The shares are trading at 0.54x TNAV for an underlying RoTE of 6.8% in 2022e, and we do not see risk to capital in the near term”, Barclays said.
Shares of Credit Suisse gained 0.7% on Tuesday morning on the news, one of the few risers on the blue-chip SMI index. They have still lost over 27% year-to-date.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.