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On Monday, Morgan Stanley (NYSE:MS) revised its price target for Julius Baer Group Ltd . (BAER:SW) (OTC: OTC:JBAXY), reducing it to CHF59 from the previous CHF65. Despite this change, the investment firm maintained an Equalweight rating on the stock. The Swiss wealth manager, currently valued at $12.58 billion, trades at $12.23 per share with a P/E ratio of 30.9x.
The adjustment in the price target by Morgan Stanley analysts comes as they modify their earnings per share (EPS) and capital expectations for Julius Baer (SIX:BAER). While the stock has seen an 8.88% gain year-to-date, InvestingPro data shows it has recently experienced significant pressure. The analysts have also provided a set of questions they believe will be beneficial for investors when meeting with the company’s management following the second-half results.
The analysts at Morgan Stanley have identified the conclusion of the FINMA Review and the forthcoming Strategy Update as pivotal events for Julius Baer. These developments are anticipated to significantly influence the company’s future direction and performance. Notably, InvestingPro highlights that Julius Baer has maintained dividend payments for 15 consecutive years, demonstrating consistent shareholder returns despite market challenges.
Julius Baer’s management is expected to address these critical topics, which are likely to shape investor sentiment and the strategic trajectory of the firm. The outcome of the FINMA Review and the details of the Strategy Update are keenly awaited by stakeholders, given their potential impact on the company’s operations and regulatory compliance.
In summary, Morgan Stanley’s updated price target for Julius Baer reflects a recalibration of expectations, taking into account recent developments and forthcoming events that could affect the company’s valuation and investor outlook.
In other recent news, Julius Baer Group has been in the spotlight following a series of recent developments. Citi maintained a Buy rating on Julius Baer, raising the price target to CHF61.40 from CHF60.00, following a positive reaction to the company’s interim management statement. This adjustment was credited to better-than-expected net new money flows and investor positioning.
The earnings per share estimates for Julius Baer were slightly adjusted, with a 4% decrease projected for 2024 due to lower earnings and a 1% to 2% adjustment for the years 2025 to 2028. This is attributed to increased profits from a 2% rise in assets under management and revenues, offset by a higher share count and the postponement of the share buyback program to 2026 due to capital shortfall.
The new price target reflects higher medium-term earnings expectations, with Julius Baer’s valuation trading at less than 8 times its projected 2026 earnings per share. Analysts anticipate a potential strategic update in the first half of 2025 which could serve as a positive catalyst for the stock.
Julius Baer’s shares are viewed as attractive due to several factors, including an expected 8% per annum total yield over the years 2025 to 2027 and potential for mergers and acquisitions. The company is also poised for solid organic growth with approximately 4% net new money growth. These are recent developments in the company’s performance.
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