Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
On Thursday, Citi analyst Nicholas Herman increased the price target on EFG International AG (EFGN:SW) to CHF15.70, up from the previous CHF14.90, while reaffirming a Buy rating on the stock. The adjustment follows EFG International’s financial results for the fiscal year 2024, which Herman found unexpectedly strong, particularly in terms of net new assets (NNA), quarter-over-quarter margin improvements, and robust underlying capital generation.
Despite the positive financial outcomes, EFG International’s shares experienced a 3.5% decline after the announcement of the FY24 results. Herman noted that this reaction was likely due to investors taking profits after the stock’s significant 20% rise over the last three months, which may have been exacerbated by low liquidity in the market.
Herman also mentioned that following the review of the FY24 results, the estimates for adjusted earnings per share (EPS) for the fiscal years 2025 to 2028 have been increased by 2-4%. This includes a 3% accretion from the acquisition of Cité Gestion, which contributed to the decision to raise the price target.
EFG International is currently Citi’s top pick among Swiss banks covered by the firm. This preference is based on the bank’s strong operating momentum, which includes growth and operating leverage, as well as the potential for utilizing surplus capital. Herman emphasized that the upside to consensus estimates for EFG International is notable, with Citi’s projections for FY25 being 16% higher than the consensus.
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