Credit Suisse (CS) Stock Up, Launching Billionaires Investment Banking Venture

Credit Suisse (CS) stock is advancing this morning as the company announced it would launch a new investment banking business to serve billionaires.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Credit Suisse (CS) - Get Report  are rising 1.86% to $11.48 this morning after the Swiss banking company announced it would launch a new investment banking business targeted at billionaires. 

The business will focus on providing merger and acquisition advice, lending and capital markets, Reuters reports. In addition to targeting the ultra wealthy, it hopes to also serve entrepreneurs in sectors such as oil, gas, biotechnology and telecommunications, according to Reuters

Credit Suisse hired UBS Group's(UBS) Charlie Buckley, who led UBS' family offices, to work with company founders and entrepreneurs. 

The venture comes as Credit Suisse CEO Tidjane Thiam attempts to scale back trading businesses to focus on wealth management, Reuters reports. The company is also drawing back its businesses that require too much capital or lack the scale to compete, including its U.S. wealth management business, Reuters added.

Yesterday, Credit Suisse posted better-than-expected second quarter revenue. Revenue came in at CHF5.47 billion, compared to analysts expectations of CHF5.17 billion. 

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate CREDIT SUISSE GROUP as a Sell with a ratings score of D. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

You can view the full analysis from the report here: CS

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