Why have Credit Suisse shares dropped so low?
- Legacy. “To be fair to Thiam, he has inherited a large part of the issues at Credit Suisse,” says Bank Vontobel analyst Andreas Venditti.
- Strategy. Credit Suisse actually suffered less pain than most of its competitors during the financial crisis. ...
- Regulations. ...
Full Answer
Is Credit Suisse stock undervalued at $10?
Credit Suisse stock (NYSE: CS) has lost 21% YTD, and at its current price of $10 per share, it is trading 15% below its fair value of $12 – Trefis’ estimate for Credit Suisse’ valuation.
How much should the market pay for Credit Suisse?
Finally, how much should the market pay per dollar of Credit Suisse’s earnings? Well, to earn close to $1. 04 per year from a bank, you’d have to deposit about $104 in a savings account today, so about 100x the desired earnings. At Credit Suisse’s current share price of roughly $10, we are talking about a P/E multiple of just above 10x.
How high is Credit Suisse’s valuation?
Trefis estimates Credit Suisse’s valuation to be around $12 per share – about 13% above the current market price – based on one key opportunity and one risk factor.
What is the opportunity in Credit Suisse’s revenue growth?
The opportunity we see is Credit Suisse Revenue growth over the subsequent quarters. Credit Suisse reported full-year 2020 revenues of $23. 85 billion – up 4% y-o-y, mainly due to growth in trading revenues, partially offset by an 11% drop in net interest income due to interest rate headwinds.
Why is Credit Suisse stock down?
They were down 3.4% on Friday, while American depositary receipts of the lender fell 1.8%. Earlier this week, the bank said it likely would be reporting a second-quarter loss, citing the impact of the war in Ukraine, tighter monetary policy from central banks, and the unwinding of Covid-19 stimulus measures.
Is Credit Suisse stock a good buy?
Credit Suisse's analyst rating consensus is a 'Moderate Sell. This is based on the ratings of 2 Wall Streets Analysts. When is Credit Suisse's upcoming earnings report date? Credit Suisse's upcoming earnings report date is Jul 26, 2022 which is in 48 days.
Is UBS better than Credit Suisse?
Credit Suisse scored higher in 2 areas: Career Opportunities and Compensation & Benefits. UBS scored higher in 7 areas: Overall Rating, Work-life balance, Senior Management, Culture & Values, CEO Approval, % Recommend to a friend and Positive Business Outlook.
What is special about Credit Suisse?
Credit Suisse is one of the most prestigious investment banks in the world. Its interns receive extensive hands-on training and work alongside senior bankers. Full-time employees have access to top-notch training programs, mentoring opportunities, and internal mobility options.
Does Credit Suisse pay a dividend?
Credit Suisse pays a dividend 1 times a year. The payment month is May. The dividend calendar shows you for more than 1,000 dividend stocks in which month which company distributes its dividends.
Will CS stock go up?
Stock Price Forecast The 16 analysts offering 12-month price forecasts for Credit Suisse Group AG have a median target of 7.10, with a high estimate of 9.98 and a low estimate of 5.66. The median estimate represents a +8.79% increase from the last price of 6.53.
Which is better HSBC or Credit Suisse?
Credit Suisse scored higher in 4 areas: Career Opportunities, Senior Management, Culture & Values and % Recommend to a friend. HSBC scored higher in 2 areas: CEO Approval and Positive Business Outlook. Both tied in 3 areas: Overall Rating, Compensation & Benefits and Work-life balance.
Is Credit Suisse a prestigious bank?
Credit Suisse is a very large, top tier private bank with a very well-known brand, making it a good option for senior international investors.
Which Swiss bank is the best?
Top 10 Banks in SwitzerlandUBS Group AG. UBS is a leading company in Switzerland present in all major financial centers worldwide. ... Credit Suisse Group AG. ... Julius Baer. ... Raiffeisen Switzerland. ... Zurich Cantonal Bank. ... Banque cantonale de Genève (BCGE) ... EFG International. ... Basler Kantonalbank.More items...
Is Credit Suisse a good company?
Credit Suisse is good company to work if you are looking for work-life balance. However, if you are ambitious and want to grow at fast pace, it will be difficult to move up the hierarchy in CS especially in IT departments.
Is Credit Suisse a Bulge Bracket?
As a catchall term for this class of large global investment bank, "bulge bracket" commonly refers to Bank of America Merrill Lynch, Goldman Sachs, Barclays Capital, Credit Suisse, Deutsche Bank, JPMorgan Chase, Citigroup, Morgan Stanley, and UBS.
Is Credit Suisse a Fortune 500?
Wal-Mart retakes the lead as the world's biggest company....Company Matches.Rank11CompanyCredit Suisse500 rank47Revenues ($ millions)89,354.459 more columns
Summary
Antonio Horta-Osório was accused of breaking Swiss and UK lockdown-related rules.
Credit Suisse's new Chairman
After the Archegos scandal, the bank started recording profits. True, it might not be entirely because of Horta-Osório but it seems that the management did an adequate job. I wrote several articles about the bank's quarterly profits.
Credit Suisse's stock and the risks
In my opinion, the investors have overreacted to the news on 01/18/2022 when the resignation was announced. So, as a result, the share price dropped significantly.
Conclusion
Obviously, Credit Suisse is a bank shattered by scandals with Archegos being the most notorious one. But soon after the Archegos-related loss, the bank started reporting profits. My base-case scenario, should nothing bad happen to the global economy, is that under the new management Credit Suisse will eventually start recording higher profits.
Why did Greensill Capital collapse?
There were two clear reasons for this: First, the collapse of Greensill Capital – a supply-chain finance business, with which the bank has several ties including $10 billion worth of funds. Second, the meltdown of U.S. based hedge fund Archegos Capital after taking on too much risk – the bank suffered a loss of $4.7 billion in Q1 FY2021 due to the crisis (Note – Credit Suisse originally reports in CHF (Swiss Francs), the same has been converted to USD for ease of comparison).
How much did Credit Suisse lose in 2020?
Credit Suisse stock (NYSE: CS CS ), the second-largest Swiss bank after UBS, lost roughly 20% – decreasing from about $13 at the beginning of 2020 to around $10 currently, underperforming the S&P500, which grew 12% over the same period.
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