Julius Baer Group Ltd (BAER) has received a new Buy rating, initiated by Goldman Sachs analyst, Benjamin Caven-Roberts.
Benjamin Caven-Roberts has given his Buy rating due to a combination of factors that suggest Julius Baer Group Ltd is poised for significant growth. The company is expected to achieve sector-leading profitability with a return on tangible equity of 30% by 2027, alongside a compound annual growth rate in earnings per share of 16% from 2024 to 2027. Despite a challenging 2025 with cost efficiencies and recurring margins lagging behind targets, and a temporary slowdown in net new money, the outlook remains positive.
Looking further into 2026 and beyond, Caven-Roberts anticipates continued advancements in cost-saving measures, stable to improving revenue margins, and a rebound in net new money, all contributing to substantial growth in profit before tax. The resumption of share buybacks is also expected to enhance earnings per share. The forecasts for 2026 and 2027 earnings are notably above consensus, driven by stronger assets under management and improved margins, coupled with effective headcount management and a focus on creating a leaner business model. These factors underpin the initiation of coverage with a Buy rating and a 12-month price target of CHF77.0.
Questions or Comments about the article? Write to editor@tipranks.com