Citi ups EFG after stock de-rated despite 'strong' Q1

EFG International AG

15/05/2023 08:57

** Shares in EFG International  EFGN.S  edge up 1.6% after
Citigroup raises its rating for the Swiss private bank to "buy"
from "neutral", citing the stock's recent de-rating despite what
the broker deemed a "strong" Q1
    ** EFG shares have lost 9% over the past month,
underperforming broadly flat European asset and wealth peers,
Citi says
    ** The broker increases its earnings estimates for the bank
on more resilient revenue margins
    ** Among Swiss peers, Citi says its top pick Julius Baer
 BAER.S  is among best placed to benefit from potential asset
attrition from Credit Suisse  CSGN.S  private bank
    ** This is an additional positive for Julius Baer's already
attractive equity story based on flow recovery from both market
normalisation and self-driven growth, the broker says
    ** UBS  UBSG.S  is less favoured, Citi says, with most
investors cautious about the size and complexity of the Credit
Suisse integration, "which is expected to result in a more
inward focus and less on growth/offense"

 (Reporting by Linda Pasquini)
 ((Linda.pasquini@thomsonreuters.com))