© Reuters.
By Scott Kanowsky
Investing.com — Shares in Credit Suisse Group AG (SIX:) rose in European trading on Thursday after JPMorgan analysts upgraded their rating of the bank.
In a note, the analysts raised Credit Suisse to “neutral” from “underweight,” citing the positive impact from the lender’s reported plan to restructure itself by slicing up its key investment bank into three parts and bringing back a so-called “bad bank” to house riskier assets.
Media reports suggest Credit Suisse may also move to sell off important divisions of the company, including its lucrative securitized products unit, to raise funds without having to ask investors for more capital.
The JPMorgan analysts said this overhaul should help assuage concerns over the health of Credit Suisse, but warned that a recent series of news stories detailing scandals, losses, and lawsuits will still have a near-term impact on the group.
They added that it was not “a given outcome” that Credit Suisse would be forced to issue a capital raise to help bolster its balance sheet.
However, they urged the bank’s management to “look at every option available to avoid a significantly dilutive capital increase.”
Credit Suisse’s stock price has plummeted by more than 55% over the past one-year period.
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