Credit Suisse cuts stance on IT, healthcare; turns bullish on banks

In June, the brokerage had turned bullish on IT citing low P/E

Credit Suisse has announced major changes to its sectoral preferences. The brokerage has gone neutral on information technology (IT), from a strong overweight (OW), citing high valuations and a relatively muted growth forecast. 

It has also cut its stance on health care from OW to underweight (UW). 

On the other hand, it has turned bullish on banking stocks, which have been laggards this year.

“After a 37 per cent bounce, the relative price-to-earnings (P/E) is now the highest since 2013, and the gains going forward are likely to be growth-dependent, which appears unlikely to break out of the 10-12 per cent range,” said