Julius Baer Group Ltd (BAER – Research Report), the Financial sector company, was revisited by a Wall Street analyst yesterday. Analyst Thomas Mills from Jefferies downgraded the rating on the stock to a Hold and gave it a CHF58.00 price target.
Thomas Mills has given his Hold rating due to a combination of factors related to the strategic and financial outlook of Julius Baer Group Ltd. The new CEO, Stefan Bollinger, is expected to reveal a strategic vision that might prioritize enduring client focus, technology enhancement, disciplined entrepreneurship, and a performance-driven culture. However, Mills prefers a neutral stance as these strategies might necessitate further cost-saving measures, considering the narrow range of options available.
Additionally, ongoing regulatory proceedings by FINMA contribute to uncertainty, particularly concerning capital returns and share buybacks. The recent investigation could limit the company’s ability to engage in share buybacks until a resolution is reached. Furthermore, the financial estimates for the upcoming years are being adjusted downwards, including a reduction in adjusted EPS and interest-related income margins for 2025. These factors, combined with the current trading price of the stock, lead to Mills’s decision to rate the stock as Hold.
In another report released on February 11, Kepler Capital also downgraded the stock to a Hold with a CHF58.00 price target.
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