GAM Advances After Credit Suisse Upgrades Stock: Zurich MoverDylan Griffiths
GAM Holding AG, the Swiss asset manager that split from Julius Baer more than three years ago, rose the most in almost two months after Credit Suisse Group AG raised its rating on the stock to outperform from neutral.
GAM climbed as much as 6.5 percent, the biggest gain since Nov. 19, and was up 4.3 percent at 14.50 francs as of 11:24 a.m. in Zurich. The company has gained 17 percent this year, giving it a market value of 2.65 billion francs ($2.9 billion).
The upgrade reflects a “combination of attractive valuation relative to the sector, improving risk appetite resulting in a broadening of flows and reducing headwinds from outflows from legacy private banking clients,” Credit Suisse analysts including Gurjit Kambo wrote in a report to clients today.
GAM said in October that assets under management increased 5.1 percent to 116.8 billion francs in the third quarter from the previous three months. Clients invested new money in fixed-income funds and precious metals exchange-traded funds, the Zurich-based company said.