IBs 4Q16: “Unusual suspects” outperform again; BNP, HSBC gain as DBK suffers
Buy: BNP and Credit Suisse
We see 28% upside at CS, with a plain-vanilla cap hike a pragmatic alternative to a complex part-IPO of its Swiss bank; we are Buy rated. We see 44% upside at BNP where strong IB trends add to the investment case (capital formation, dividends, receding fin-reg risk, valuation). All in, our EPS for “Group 1” is +1% for 2017 and -3% for 2018.