Buy Signal on Rothschild & Co
Rotschild, is a € 1.7 bn market cap, and the parent company of Rothschild Group which operates in Financial advisory, Wealth and Asset Management and Merchant Banking activities. Revenues break down between 1/ financial advisory (62%) including advisory services in mergers and acquisitions, strategy and financing (restructuring, private debt and capital markets); 2/private banking and asset management (26%) including €76 bn in AUM; and 3/ private equity and private debt fund management (12%) with €14 billion in AUM.
Rotschild reported strong performance in Q2 in the Advisory segment, while the dividend yield of 4.6% looks very attractive especially as the ECB has a very selective approach in terms of Banks dividends allowance.
Short term catalyst: Advisory performance, dividend .
This signal looks mainly company specific.