Gold bars to be exempt from tariffs, White House clarifies
Investing.com - Citi has downgraded EFG International AG (SIX:EFGN) from Buy to Neutral while raising its price target to CHF15.40 from CHF14.10, citing valuation concerns following the stock’s recent strong performance.
The Swiss private banking group has seen its shares surge almost 40% over the last three months, outperforming both the broader Western European financial banks sector (up 26%) and diversified financials (up 22%), according to Citi’s analysis.
EFG International now trades at approximately 12.5 times its projected 2026 earnings, which Citi notes is almost one standard deviation above its historical average and represents a 2x premium compared to its closest peer, Julius Baer (SIX:BAER).
Despite maintaining a constructive outlook on the company’s prospects and seeing potential upside to consensus expectations, Citi analyst Nicholas Herman indicated the firm "struggles to justify such a strong premium" given ongoing risks from legal liabilities.
The investment bank concluded that while it remains positive on EFG’s medium-term outlook, the risk-reward profile now appears "more balanced" with the current valuation looking "fair" following the recent share price appreciation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.