US stock futures steady after Wall St soars on dovish Powell; Nvidia earnings due
On Friday, Morgan Stanley (NYSE:MS) issued a downgrade for Julius Baer Group Ltd (OTC:JBAXY). shares, moving from an Equalweight rating to Underweight, despite raising the price target to CHF59.00 from CHF54.00. The decision comes ahead of the anticipated announcement of a new strategy by CEO Stefan Bollinger on June 3, 2025.
Stefan Bollinger, who took the helm as CEO in January, is set to unveil a new strategic direction for the Swiss private banking group. Morgan Stanley’s analysis indicates that while Julius Baer (SIX:BAER)’s exposure to the fast-growing Asia and Middle East markets and its underpenetrated alternatives sector are advantages, there are concerns about the company’s ability to meet consensus expectations.
According to Morgan Stanley, the potential for Julius Baer to disappoint investor expectations is significant. The analysts are approximately 10% below the consensus on earnings forecasts for the company. They note that the current share price offers virtually no upside to their target, which is in contrast to over 10% potential upside seen within the sector.
Currently, Julius Baer’s shares are trading at a multiple of 10.6 times the estimated earnings for 2027, a figure that is around 10% higher than its historical average. This valuation has contributed to the decision by Morgan Stanley to adopt a more cautious stance on the stock.
Morgan Stanley’s revised price target of CHF59.00 reflects a modest increase from the previous target of CHF54.00. The new target suggests a limited growth perspective for Julius Baer’s shares as per the firm’s analysis. The upcoming strategy announcement by CEO Bollinger is a key event that investors will be watching closely to assess the potential impact on the company’s financial performance and stock valuation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.