J.P. Morgan has increased its stake in Kuros Biosciences, a Swiss bone-regeneration medtech company based in Schlieren, taking advantage of the stock's weakness this year. The American bank, which only became a significant shareholder in mid-August, now holds slightly more than 5% of voting rights, with roughly half in physical shares and the remainder likely via derivatives or futures contracts, according to a disclosure filed Wednesday.
Kuros was the standout Swiss performer of 2024, with its share price nearly sextupling. This year has been a different story: the stock is down approximately 34% since January, ranking among the ten worst-performing Swiss equities. It currently trades below CHF 19, far short of UBS's CHF 33 twelve-month target set during its recent debut coverage with a Buy rating — a move that produced only a brief rally.
The buying interest from J.P. Morgan comes despite warnings from the cash Insider that investors considering an entry should maintain a long time horizon and substantial risk tolerance, regardless of the elevated price targets set by UBS and other banks.
Separately, a 44-page strategy paper from Oddo BHF chief analyst Christian Arnold, published Monday, ranks Swiss stocks by the gap between their current prices and analyst target levels. Oddo sees notable upside potential in Xlife Sciences (Outperform, target CHF 31, current CHF 9.75), Aryzta (Outperform, target CHF 75, current CHF 37.25), Cosmo (Outperform, target CHF 92, current CHF 56.30), and Komax (Outperform, target CHF 125, current CHF 79.30). Conversely, several larger names appear overvalued relative to targets: AMS Osram (Underperform, target CHF 12, current CHF 22), Swisscom (Underperform, target CHF 483, current CHF 640), Roche (Underperform, target CHF 300, current CHF 351), Bachem (Neutral, target CHF 66, current CHF 82.60), Kühne+Nagel (Underperform, target CHF 186, current CHF 222), Swatch Group (Underperform, target CHF 153, current CHF 191), and Sandoz (Neutral, target CHF 62, current CHF 73).
A second strategy note from London-based UBS chief economist Gerry Fowler and his co-author reinforces an optimistic stance on European equities, projecting the Stoxx Europe 600 to reach 690 points by end-December (a 7% gain from current levels) and 760 points by end-2027 (an 18% increase). Among Swiss holdings in UBS's quantitative tactical model, Glencore, DSM-Firmenich, BCV, and Nestlé were flagged as above-average candidates — a notably balanced lineup given that previous months saw few or no Swiss names on either side of UBS's tactical recommendation lists. Explicitly recommended Swiss names include Lonza, VAT Group, and Helvetia Baloise, while negative mentions included Lindt & Sprüngli and Barry Callebaut, though both carry explicit Buy or Neutral ratings from UBS analysts. Swatch Group, Swiss Re, and Swiss Life were singled out with explicit Sell ratings.
