Credit Suisse: Société Générale upgrades to buy.

(CercleFinance.com) - In a report on investment banks, Société Générale (SG) upgraded its rating on the Credit Suisse stock (CS Group) from hold to buy.


The main argument: the implementation of a major savings plan. SG has therefore raised its 12-month target price from 15 Swiss francs to 16.5 Swiss francs (+10%). Credit Suisse also becomes SG's favourite Swiss bank, ahead of UBS, which it also recommends investors buy.

According to SG, there is no doubt that Credit Suisse is implementing a drastic turnaround plan. From FY 2018, analysts expect cost reductions to reach around 400 million Swiss francs, which would reduce the total to 17 billion Swiss francs. The report says that the consensus does not seem to be taking this into account yet.

Accordingly, SG analysts say that Credit Suisse's leeway in terms of multiples is expected to improve. This would open the way for an increased dividend of 0.60 Swiss francs in 2018 to 0.75 Swiss francs in 2019.



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