CS

Credit Suisse Group AG - ADR

Finance/Real Estate


Presented:12/03/2019
Price:$12.83
Cap:$31.74B
Current Price:$0.89
Cap:$3.50B

Presented

Date12/03/2019
Price$12.83
Market Cap$31.74B
Ent Value$203.42B
P/E Ratio11.35x
Book Value$18.30
Div Yield2%
Shares O/S2,473.78M
Ave Daily Vol2,331,753
Short IntN/A

Current

Price$0.89
Market Cap$3.50B
Credit Suisse Group AG engages in the provision of financial services. It operates through the following segments: Swiss Universal Bank; International Wealth Management; Asia Pacific; Global Markets; Investment Banking and Capital Markets; and Strategic Resolution Unit. The Swiss Universal Bank segment offers comprehensive advice and financial solutions to private, corporate, and institutional clients in Switzerland. The International Wealth Management segment gives advisory services, and tailored investment and financing solutions to wealthy private clients and external asset managers in Europe, the Middle East, Africa, and Latin America. The Asia Pacific segment comprises of wealth management, financing, and underwriting activities. The Global Market segment delivers securities sales, trading and execution, prime brokerage, and comprehensive investment research. The Investment Banking and Capital Markets segment covers investment banking services to corporations, financial institutions, and financial sponsors. The Strategic Resolution Unit segment includes non-controlling interest-related revenues and expenses resulting from the consolidation of certain private equity funds and other entities. The company was founded by Alfred Escher on July 5, 1856 and is headquartered in Zurich, Switzerland.

Publicly traded companies mentioned herein: Credit Suisse AG (CS), Goldman Sachs Group Inc (GS), JPMorgan Chase & Co (JPM)

Highlights

The presenter is long shares of Credit Suisse AG (CS) on the premise that the company is currently undervalued, has two great wealth management businesses, and is well positioned thanks to the strong leadership of CEO Tidjane Thiam. He believes that CS is a high quality financial/wealth manager that trades cheaply at ~70% of TBV and 5x - 6x earnings. Other wealth managers trade around 14x, and CS’s business is 80% wealth management.Based on his assumptions, the company should do ~ €2.20 in earnings in 2021 and trade at 12.5x (The Street is currently modeling ~€ 1.75). This implies a stock price of €27.50 and ~118% upside. 

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