City. Says Credit Suisse’s sinking stock is a ‘buy for the brave’

A closely followed gauge of credit risk for the bank remains at a record high even after the bank’s chief executive officer Ulrich Körner sought to pacify employees over the weekend. Word of assurance came ahead of Credit Suisse’s strategic plan — on potential asset and business sales — to be unveiled in late October.

According to Citi analysts, there are reasons to be cautious. “We see significant execution risk in any new strategic plan,” wrote Andrew Combs, one of four analysts with a buy rating on the stock. According to data from Bloomberg, 15 others hold elsewhere and nine others. has sold.

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In a note titled “This is not 2008”, Combs said markets were pricing in “extremely” weak capital growth. Credit Suisse turmoil deepens with record stock, CDS levels

Indeed, analysts at Deutsche Bank AG in August said that Credit Suisse would need a capital gap of at least 4 billion Swiss francs ($4 billion) to improve its financial strength, fund its restructuring and support growth. have to face.

This story has been published without modification in text from a wire agency feed.