CNBC Pro

Bank of America, Societe Generale downgrade Credit Suisse amid $4.7 billion Archegos hit

Share
Credit Suisse
Stefano Rellandini | Reuters

Wall Street analysts are reevaluating their ratings on Credit Suisse after the bank announced losses of $4.7 billion on exposure to beleaguered U.S. hedge fund Archegos Capital.

The Swiss lender on Tuesday scrapped its bonuses, cut its dividend and suspended share buybacks as it forecast a 900 million Swiss franc ($960.4 million) pre-tax loss for the first quarter.

Investment Bank CEO Brian Chin and Chief Risk and Compliance Officer Lara Warner have stepped down with immediate effect.

Credit Suisse shares offered a muted reaction during Tuesday's trade, but here's what the experts had to say:

Bank of America

Bank of America downgraded Credit Suisse's stock to "underperform" on Tuesday, its second downgrade in a week following the Archegos Capital meltdown. The 4.4 billion Swiss franc loss on Archegos was more than double what Bank of America expected, research analyst Alastair Ryan noted Tuesday.

However, Ryan also highlighted that this was balanced by very strong first-quarter trading performance, enabling Credit Suisse to avoid having to raise equity.

More In Street Calls

CNBC ProGoldman names 7 'attractive' stocks to buy in India — one with a 78% upside
CNBC ProJPMorgan highlights cybersecurity names that could see a boost under ESG investing
CNBC ProHere are Wednesday's biggest analyst calls of the day: Amazon, Morgan Stanley, Apple & more