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Swiss Market Index Closes Week Flat; Aevis Victoria Shares Down

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Swiss stocks were flat at the end of the week, with the Swiss Market Index up 0.01% on Friday's close, as investors assessed the latest business surveys and economy-related data releases across key markets.

Provisional data from Switzerland's Federal Statistical Office showed that the country's hotel sector recorded 5 million overnight stays in July, up 0.5% year over year. Hotel bookings by domestic guests increased 3.9% on an annual basis, while those from foreigners fell 2.4%.

Across the pond, the unemployment rate in the US held steady at 4.1% in August, data from the country's Bureau of Labor Statistics showed, in line with market forecasts.

"The US added 162,000 jobs in August, above all expectations in the market, with an additional 55,000 of upward revisions to the past two months. With Fed Chair Kevin Warsh describing the US at full employment, this outcome has nudged expectations of a September rate hike higher, but the final decision hangs on next Friday's inflation print," ING said. "The unemployment rate remains unchanged at 4.1% despite an improvement in the participation rate. Wage growth is benign, rising 3.1% year-on-year."

On the corporate front, Aevis Victoria (AEVS.SW) placed a total of 1 million shares at 12.40 francs apiece with a long-term institutional investor, for a total consideration of 12.4 million francs. The shares were placed by a former board member of the Swiss investment company and a nonexecutive board member. The stock was 3.11% in the red at closing.

RBC Capital Markets expects Sandoz Group (SDZ.SW) to unveil new midterm targets at its upcoming Sept. 8 capital markets day and potential announcements on launch timings of its biosimilars pipeline following the Swiss drugmaker's recent partnership with Henlius. At the end of Friday's trading, Sandoz shares shed 2.84%.

"Current 2023-2028 mid-term targets are for mid-single digit sales CAGR and 2028 Core EBITDA margin of 24-26%. New targets should capture the start of the 2029+ biosimilar pipeline opportunity and for 2026-2031, consensus models 6% sales CAGR and a 27% 2031 Core EBITDA margin. Simply reiterating a mid-single digit mid-term revenue CAGR target would be underwhelming and could see a negative stock reaction," the research firm said. "We anticipate the company is more likely to point to growth acceleration post-2028. Targeting mid-to high-single digit revenue CAGR 2026-2031 would likely be viewed positively, with a 5-year 7% sales CAGR implying 5% upside to consensus 2031 sales and high-single digit % upside to consensus 2031 EPS."

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