Double-digit growth in third quarter residential depth revenues was a highlight for Credit Suisse. Higher depth penetration is considered to remains a key driver of the company’s revenue growth, and suggests the Marketplace strategy is working.
Changes to the broker’s earnings estimates to reflect a higher contribution from residential depth revenues are offset by lower forecasts at the other divisions. Despite this, the target is raised to $5.15 from $5, with the increase driven by an extension to the forecast period.
Sector: Software & Services.
Target price is $5.15.Current Price is $4.90. Difference: $0.25 – (brackets indicate current price is over target). If DHG meets the Credit Suisse target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).