In a report released today, Nicholas Herman from Citi upgraded Vontobel Holding AG to a Hold, with a price target of CHF63.30.
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Nicholas Herman has given his Hold rating due to a combination of factors surrounding Vontobel Holding AG’s recent performance and market reactions. Despite a significant 12% drop in share price following the company’s 1H25 results, Herman believes this reaction is overly negative. The decline was partly due to a notable earnings miss and investor expectations, which were initially optimistic due to strong net new money momentum in Private Clients and anticipated positive trading conditions.
Herman notes that the company’s call was more positive than the market’s reaction suggested, with Vontobel showing a constructive stance on client demand, especially in higher-margin products, and maintaining profitability targets despite facing a substantial foreign exchange headwind. While the FY25 earnings per share estimate was reduced by 8% due to lower revenues and higher costs, the medium-term estimates remain largely unchanged. This balanced risk-reward perspective, alongside the company’s valuation and cautious consensus, led to the upgrade from a Sell to a Hold rating.
Herman covers the Financial sector, focusing on stocks such as Aberdeen Group, Julius Baer Group Ltd, and Intermediate Capital. According to TipRanks, Herman has an average return of 7.1% and a 63.77% success rate on recommended stocks.
In another report released on July 14, UBS also maintained a Hold rating on the stock with a CHF63.00 price target.