Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Credit Suisse Group Shares Could Fly 15%

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking analyst upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Credit Suisse Group AG (NYSE: CS  ) gained about 1% today after Deutsche Bank upgraded the Swiss financial services giant from hold to buy.

So what: Along with the upgrade, analyst Matt Spick raised his price target to CHF 31 (from CHF 30), representing about 15% worth of upside to yesterday's close. So while momentum traders might be turned off by Credit Suisse's pullback in recent weeks, Spick's call could reflect a sense on Wall Street that its growth prospects are becoming too cheap to pass up.

Now what: According to Deutsche, Credit Suisse's long-term risk/reward trade-off is rather attractive at this point. "Our forecasts for profit and CET1 for 2014E are revised down, but our 2015E profit forecasts are intact, and we expect capital to rebuild steadily as Credit Suisse works on reducing FICC RWAs further," said Spick. "Over time, we expect this to work to the advantage of the share price, given that we see Credit Suisse as inching closer to the WM / Equities model of investment banking." When you couple that upbeat outlook with Credit Suisse's reasonable valuation -- P/B of one and a 2.5%-plus dividend yield -- it's easy to understand Deutsche's bullishness. 

More dynamic dividend opportunities
The smartest investors know that dividend stocks simply crush their non-dividend-paying counterparts over the long term. That's beyond dispute. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2972649, ~/Articles/ArticleHandler.aspx, 9/2/2015 6:11:48 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Brian Pacampara

I take a look at big 10% moves, as well as stock-shaking analyst calls, on a daily basis for The Fool. While I don't believe in active trading, closely monitoring Mr. Market's mood swings can help identify long-term opportunities.

Today's Market

updated Moments ago Sponsored by:
DOW 16,351.38 293.03 1.82%
S&P 500 1,948.86 35.01 1.83%
NASD 4,749.98 113.87 2.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/2/2015 4:00 PM
CS $26.19 Up +0.29 +1.12%
Credit Suisse Grou… CAPS Rating: ***