What To Expect From Credit Suisse Stock?
Credit Suisse’s stock (NYSE: CS) has lost approximately 29% YTD, as compared to the 3% rise in the S&P500 over the same period. Further, CS stock is currently trading around $2 per share, which is 14% below its fair value of just below $3 – Trefis’ estimate for Credit Suisse’s valuation. The Swiss bank missed the consensus estimates in the fourth quarter of 2022, with net revenues declining by 36% y-o-y to $3.18 billion. It was mainly because of a 74% drop in the investment bank division, followed by a 23% decline in the Swiss bank and a 21% decrease in the wealth management units. Further, the firm posted a net loss of $1.45 billion – down 36% y-o-y (Note – Credit Suisse originally reports in CHF (Swiss Francs), the same has been converted to USD for ease of comparison).
The bank’s top line decreased 37% y-o-y to $15.64 billion in FY 2022. It was mainly due to a 55% decline in the investment bank, coupled with a 33% decrease in the wealth management division. Further, the Swiss bank revenues were reduced by 9% in the year. Notably, the firm announced a restructuring plan at the start of the fourth quarter. It incurred a restructuring expense of $559 million in FY2022. Overall, the adjusted net income decreased from -$1.81 billion to -$7.65 billion.
The bank’s stock price has seen very high volatility over the last week. It was partly because of the collapse of the Silicon Valley Bank (SVB), and partly due to the reports that Saudi National Bank is not considering infusing any more capital into the distressed wealth management giant. Moving forward, Credit Suisse’s revenues are forecast to remain around $15.98 billion in FY2023 and $16.13 billion in FY2024. Additionally, adjusted net income is likely to be approximately $1.2 billion in 2024. This coupled with an annual EPS of $0.42 and a P/E multiple of around 6x will lead to a valuation of $3.
What if you’re looking for a more balanced portfolio instead? Our high-quality portfolio and multi-strategy portfolio have beaten the market consistently since the end of 2016.
| Returns | Mar 2023 MTD [1] |
2023 YTD [1] |
2017-23 Total [2] |
| CS Return | -30% | -29% | -85% |
| S&P 500 Return | 0% | 3% | 77% |
| Trefis Multi-Strategy Portfolio | -2% | 5% | 230% |
- What To Expect From Credit Suisse Stock?
- Where Is Credit Suisse Stock Headed?
- Credit Suisse Stock Missed The Street Expectations In Q3, What To Expect?
- Is Credit Suisse Stock Attractive At The Current Levels?
- Credit Suisse Stock Lost 21% Last Week, What’s Next?
- What To Expect From Credit Suisse Stock?
[1] Month-to-date and year-to-date as of 3/17/2023
[2] Cumulative total returns since the end of 2016
Invest with Trefis Market Beating Portfolios
See all Trefis Price Estimates