UPDATE: Barclays Upgrades Credit Suisse to Equal-Weight; Negatives Priced In
Barclays raised its rating on Credit Suisse (NYSE: CS) from Underweight to Equal-weight.
Barclays noted, "Our Underweight view on CS shares had elements in common with UBS (Swiss capital, IB decline, WM erosion), plus the additional concern that CS's capital ratios were failing to build towards Basel-3 requirements, and a lack of clarity over strategic direction in the investment bank (shrinking or rebuilding). As with UBS, we think some of the negatives are now incorporated into market views on CS, including substantially reduced earnings estimates and equity valuation. CS has now taken action to raise capital and, we believe, is back on track to reach its Basel-3 requirements. We still find the IB strategy unclear (which is bad) but recognise that UBS's recent strategy change could encourage CS to make a similar clarification (which could be good)."
Credit Suisse closed at $23.42 on Monday.
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