Shares of the leading financial services company Credit Suisse (NYSE:CS)(GB:0QP5), which came under pressure over its liquidity and financial health concerns, recovered some of its lost ground last week. The rebound in CS stock followed the news that investors are showing interest in its securitized products business, which is up for sale. Moreover, the Swiss bank’s surprise move to buy back $3 billion worth of debt further supported the recovery.
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Notably, CS stock gained about 24% last week. However, CS stock is still down approximately 49% year-to-date.
Sixth Street, Pimco, and a group of investors, including Centerbridge Partners, are among the bidders for Credit Suisse’s securitized products business, Bloomberg reported.
On the other hand, to restore shareholders’ confidence, Credit Suisse announced that it would buy back debt ($2 billion in U.S.-Dollar-denominated senior debt securities and €1 billion in euro or pound sterling-denominated senior debt securities) to capitalize on attractive market prices. Further, the move will reduce the overall liability and optimize interest expenses for the financial services giant.
Is Credit Suisse Stock a Buy, Sell, or Hold?
While concerns over Credit Suisse’s liquidity and financial health are overblown, investors should take caution and wait for the company’s restructuring measures to gain traction. Credit Suisse stock has a Hold consensus rating on TipRanks based on two Buy, 10 Hold, and four Sell recommendations.
Furthermore, analysts’ average price target of SFr.6.25 implies 40.2% upside potential from current levels.
Despite the stock price recovery, TipRanks’ data shows that the news sentiment on Credit Suisse remains very negative.
