On Friday, Citi updated its outlook on Julius Baer Group (OTC:JBAXY) Ltd. (BAER:SW) (OTC: JBAXY), increasing the price target to CHF71.00 from the previous CHF68.50, while maintaining a Buy rating on the stock. The adjustment follows Julius Baer's shares rising by 2% after the four-month financial report for 2024, which the firm interpreted as a slight net positive.
The bank's analyst noted that the earnings per share (EPS) estimates were moderately increased by 1-3% after accounting for larger-than-anticipated forecasted buybacks. This is in light of the stronger-than-expected capital position reported by Julius Baer. The price target uplift reflects not only these changes but also the absence of new negative news, which had been a concern for investors given the company's past performance in areas such as deleveraging and net new money (NNM).
Julius Baer's recent report indicated a recovery in flows, with the hiring of new relationship managers (RMs) progressing as planned. The analyst expressed confidence that this marks a foundation for future growth. Expectations include an improvement in consensus earnings, stronger NNM contributing to a potential re-rating, the possibility of capital returns, and a relative insensitivity to declining interest rates.
Citi's perspective on Julius Baer is grounded in the belief that the company is poised for an upward trajectory. The analyst's comments highlight the firm's solid capital position and the potential for increased shareholder returns, alongside a favorable operational outlook despite challenges faced in previous quarters.
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