Analyst Note| Johann Scholtz, CFA |
Wide-moat Julius Baer reported slowing revenue growth in its interim management statement for the 10 months through Oct. 30, 2021. However, we remain confident that the firm can meet our CHF 1 billion net profit estimate for 2021, which would represent a 47% year-on-year growth in earnings. The decline in the gross margin that Julius Baer earns on the assets it manages on behalf of its clients was the major disappointment in the trading update. We maintain our CHF 69 per share fair value estimate and our wide moat rating.