Julius Baer downgraded to "hold"

04/11/03 - Deutsche Bank

NEW YORK, April 11 (New Ratings) – Analyst Peter Casanova of Deutsche Bank downgrades Julius Baer Holding (BHZ) from "buy" to "hold." The target price has been raised from CHF240 to CHF250.

Shares of Julius Baer, a banking institution, are currently trading at CHF264.50.

According to Deutsche Bank’s research note, the company’s stock is over valued at its current level on account of the bullish equity markets and appreciated exchange rates. The analyst, however, expects the valuation to dilute once the market stabilizes.

Deutsche Bank says that the domestic and international outputs across all sectors have declined in Q103. Julius Baer’s key clients are controlling their spendings and are shifting to fixed income products, resulting in a drop in the company’s margins. The analyst expects the turnover commissions to weaken considerably in CY03 if the market does not rebound. The analyst observes that these declining trends are, however, improving since February.

The EPS estimates for 2002, 2003 and 2004 are CHF16.90, CHF12.50 and CHF18.50, respectively.

Deutsche Bank downgrades Julius Baer Holding from "buy" to "hold."