UPDATE: Societe Generale Upgrades Credit Suisse Group to Buy on Outlook, Exchange Rates

Societe Generale upgraded Credit Suisse Group

from Hold to Buy. Societe Generale noted, "We see upside in Credit Suisse due to three reasons: (i) equities trading and M&A and ECM revenues in the US are likely to improve as political uncertainty declines (=CHF2.6 per share), (ii) with a six-month delay this should improve revenue margins in Wealth Management from 109bp to 118bp (= + CHF2.1 per share), (iii) a weakening CHF versus the USD would add CHF3.5bn to capital (=+CHF1.9 per share) and (iv) the subsequent lower leverage for the group reduces the cost of equity from 12.3% to 11.3% (= + CHF3.9 per share)." Credit Suisse Group closed at $28.35 on Wednesday.