Credit Suisse: Morgan Stanley downgrades stock

(CercleFinance.com) - On Friday Morgan Stanley downgraded its rating on Credit Suisse shares to "equal weight" instead of "overweight", having cut its corresponding target price from 14 Swiss francs to 11 Swiss francs.


In research comments, the broker said it was concerned about persistent uncertainties surrounding the Swiss private bank, whose share price has fallen by 12% this year (compared with +20% for UBS or Julius Baer), despite favourable business trends.

Morgan Stanley attributes this performance to the difficulties of the Swiss bank's prime brokerage business and its exposure to the Greensill fund in liquidation.

However, the analyst points out that Credit Suisse's market capitalisation has shrunk by some 5.8 billion Swiss francs over the past two weeks, while losses associated with the US fund Archegos amount to just 4.4 billion Swiss francs.

Credit Suisse shares are down over 2.5% just before noon in Zurich.



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