EFG International (EFGN.S): De-Rating Creates Opportunity to Step In; Upgrade to Buy

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EFG International (EFGN.S): De-Rating Creates Opportunity to Step In; Upgrade to Buy

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13 Jul 2026 02:15:25 ET │ 17 pages

EFG International (EFGN.S)

De-Rating Creates Opportunity to Step In; Upgrade to Buy

CITI'S TAKE

Buy ↑ from Neutral EFG shares have fallen c.13% YTD and, on our FY28E estimates, has de-

rated by >15% to 10.5x FY28 P/E, significantly underperforming Swiss Price (10 Jul 26 17:30) SFr16.76

peers BAER and VONN (+15–20% including c.10% re-rating) as well as the Target price SFr18.80↑

broader European asset management and wealth peers that have all risen from SFr18.00

on highly favourable markets. In our view, de-rating is partly justified, as Expected share price return 12.2%

we previously argued EFG shares traded rich at a 3.5x premium to closest Expected dividend yield 4.5%

peer BAER. However, with the two companies now trading on the same

Expected total return 16.6% headline multiple (EFG still on 0.5x premium excl. surplus capital), this

Market Cap SFr5,161M seems somewhat harsh on EFG, given its current superior fundamentals in

our view. We have long been constructive on EFG’s medium-term equity US$6,425M

story, given a solid track record of delivery, solid organic growth, operating

leverage, and bolt-on M&A optionality, but now see an attractive entry

point. We upgrade our rating to Buy from Neutral; new TP CHF18.8.

Nicholas HermanAC

+44-20-7986-4203

Upside to Targets and Consensus — FY28 financial targets already look readily nicholas.herman@citi.com

achievable to us given conservative assumptions plus favourable markets. More

Andrew Coombs, CFAsignificantly, market expectations look overly cautious. We estimate EFG’s targets

imply FY28 net profit CHF460–470m, which should be >CHF470m with the already- andrew.coombs@citi.com