JBARF - Julius Baer: Shares Still Good Value After Private Debt Debacle

2024-04-10 10:11:22 ET

Summary

• Shares of Julius Baer have underperformed European financials by a wide margin over the past year, following the emergence of sour loans in its private debt business.
• Although a big misstep for the bank, this is a small part of Baer's overall loan book and should be contained from here.
• At 11.5x underlying 2023 EPS, these shares still trade around 20% below levels seen early last year, pointing to attractive medium-term upside.

Swiss wealth manager Julius Baer (JBAXY)(JBARF) has been a disappointing performer over the past year, underperforming wider European financials ( EUFN ) by around 35ppts following the disclosure of significant levels of sour loans in its private debt business....

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