Credit Suisse Group AG (NYSE: CS) is preparing for the departure of its CEO Thomas Gottstein, The Wall Street Journal said, citing people with knowledge of the matter.
The Swiss financial services provider is expected to make the announcement as early as Wednesday, along with its second-quarter results, the sources said.
Gottstein was tasked with restructuring the bank last year but failed to show significant progress, making investors and the Board unhappy.
A report by Reuters said Ulrich Koerner is expected to succeed Gottstein as the new CEO of Credit Suisse. Koerner joined the company in April 2021 as the Head of Asset Management.
Additionally, Christian Meissner, the Head of Investment Banking, is also set to leave, the people said. However, he is not likely to exit immediately.
Meanwhile, the Street expects the company to post a loss of two cents in the second quarter, compared to a profit of $0.11 per share in the previous year.
Wall Street’s Take on Credit Suisse
Last month, Nicholas Watts of Redburn Partners downgraded the rating on the stock to Sell from Hold and refrained from providing a price target.
In a report, Watts said, “The last decade has been highly favorable for global wealth accumulation, but the outlook from here is less clear amid cyclical pressures and intensifying debate around wealth inequality.”
On TipRanks, the stock has a Moderate Sell consensus rating based on one Hold and three Sells. Credit Suisse’s average price target of $6.94 reflects upside potential of 33% from current levels.
Hedge Funds Boost Position in Credit Suisse
TipRanks’ Hedge Fund Trading Activity tool shows that confidence in CS is currently Positive, as the cumulative change in holdings across all five hedge funds that were active in the last quarter was an increase of 1.2 million shares.
Investors Wait for CS’ Q2 Results
Investors are eagerly waiting for the Swiss lender’s quarterly results to see how it plans to turn around its misfortunes. A better-than-expected performance would be more than welcome given the fact that CS stock has lost 46.7% so far this year.
Following the release of the news on Tuesday, the stock lost 6.8%. However, it recovered 1.3% in the extended trade to end the day at $5.29.
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