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Investing.com - Citi has upgraded Vontobel Holding AG (SIX:VONN) from Sell to Neutral, while raising its price target to CHF63.30 from CHF60.00, according to a research note released Friday.
The upgrade follows a 12% stock decline after Vontobel’s 1H25 results, which Citi analyst Nicholas Herman described as "harsh" and "not consistent with the tone of the call." The bank’s presentation was characterized as "incrementally more constructive" compared to previous ones.
Citi noted that Vontobel successfully managed a significant foreign exchange headwind during the reporting period, despite the negative market reaction to headline results that missed expectations.
The research firm pointed to a shift in market consensus, which has become "much more cautious" with a 73% cost-income ratio forecast for FY26 versus Vontobel’s target of below 72%.
With current valuation appearing to imply a lower multiple for Vontobel’s Institutional Clients business, Citi now views the stock’s risk-reward profile as "much more balanced," prompting the rating change.
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