Wednesday, 18 December 2024 Reading time : 3 minutes

The research department of the Zürcher Kantonalbank has identified ten Swiss equities that it believes have particularly good prospects for the year 2025. The Tracker Certificate on «ZKB Jahresfavoriten 2025» allows investors to invest in this selection. The basket, which is diversified across various sectors, consists of five large caps and five small and mid-caps. 

Among the large-cap favourites is the building materials producer Holcim, which shows strong margin and cash flow development and is pushing ahead with the spin-off of its North American business. Partners Group is also included in the selection: the Zug-based company should benefit from a recovery in the private equity transaction market, according to the ZKB analysts. At Roche, market expectations for the pipeline remain modest, but the pharmaceutical giant has good earnings visibility until 2030. ZKB Research forecasts attractive structural growth for inspection company SGS and is confident about the potential for margin improvement. Hearing aid specialist Sonova is well ahead of its competitors with its AI platform, which should support above-average growth.

Among the small and mid-caps, BKW is a favourite. The electricity company should achieve a significant improvement in earnings in the short to medium-term thanks to significantly higher hedged electricity prices. Supported by the recent major acquisition in the sweets business, analysts at ZKB highlight the attractive earnings prospects of the food company Emmi and see significant upside potential after a disappointing stock price performance. The equity experts expect Helvetia to maintain its growth momentum in non-life insurance and continue to pay attractive dividends. The online bank Swissquote has good growth prospects in Switzerland due to its low market share and should benefit from a normalisation of trading activity. According to ZKB Research, the medtech company Ypsomed is benefiting from the trend towards self-medication and the increasing share of injectables in the biologics segment, including biosimilars.

The ten selected stocks will be included in the equity basket with an equal weighting of 10% each during the initial fixing period. In terms of market capitalisation, this gives a relatively higher weighting to small and medium-sized companies in the basket.

Investing in the «Favourite Stocks 2025»

Tracker Certificate: Full participation
The Tracker Certificate is suitable for investors who expect a positive performance of the basket and want to participate fully in this performance. 

Issue price of CHF 100.00
1 year maturity
Valor: 121 826 339
Termsheet
About the product

Outperformance Certificate: Over-proportional participation
The Outperformance Certificate is suitable for investors who expect the basket to perform positively but do not expect the cap to be exceeded. In this case, they participate disproportionately in the price gains.

140% Upside Participation
110% Cap Level (maximum return 14%)
Issue price of CHF 100.00
1 year maturity
Valor: 121 826 357
Termsheet
About the product

Indicative terms

In subscription until January 17, 2025, 12:00 CET.

Disclaimer
This document is for marketing purposes. It represents the opinion of the trading department of Zürcher Kantonalbank (and not the independent financial analysis), unless expressly marked otherwise. The composition and weighting as well as any adjustment of the basket is carried out by the trading department of Zürcher Kantonalbank and not by the independent financial analysis of Zürcher Kantonalbank, and the corresponding decisions do not constitute an assessment or investment recommendation by the independent financial analysis of Zürcher Kantonalbank.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, financial condition, development or performance of the issuer to be materially different from any future results, financial condition, development or performance expressed or implied by such statements. Due to legal, regulatory or tax regulations, products and services may be subject to restrictions based on residence, domicile, nationality or customer segmentation. Therefore, it cannot be excluded that certain products and services may not be suitable or available for all persons. This document has been prepared by Zürcher Kantonalbank with due diligence. However, Zürcher Kantonalbank does not guarantee the accuracy and completeness of the information contained therein and does not accept any liability arising from the use of this document. This document is neither an offer to conclude an agreement nor an invitation to make an offer for products and services. It does not constitute an offer or recommendation for the purchase, holding or sale of financial instruments. Every investment is associated with risks, in particular those of fluctuations in value, earnings and possibly exchange rates. For an assessment of the specific risks of investments, it is recommended that you consult the risk information provided by the bank (e.g. risk brochure, prospectuses, key information document or other product documentation)". The present document has not been drawn up by the “financial analysis” department as defined in the rules of the “Directives on the Independence of Financial Research” published by the Swiss Bankers Association, hence these rules do not apply to this document. However, companies of the Zürcher Kantonalbank Group may publish Research Publications regarding the underlying that might lead to conflicts of interest between the affected affiliates as well as between ZKB and its affiliates towards their investors. This document contains general information and does not take into account personal investment objectives or the financial situation or special needs of a specific recipient. The recipient should carefully check the information for compatibility with his/her personal circumstances before making any investment decision. For the assessment of legal, regulatory, tax and other implications, the recipient is advised to seek professional advice. This document does not constitute a (base) prospectus, final terms or key information document. The base prospectus, the final terms and any key information document may be obtained free of charge from Zürcher Kantonalbank, Bahnhofstrasse 9, 8001 Zurich, VRIS Department, and from www.zkb.ch/finanzinformationen. The structured products mentioned in this document are subject in particular to the sales restrictions set out in the base prospectus (EEA, U.S.A. / U.S. persons, United Kingdom, Guernsey). In particular, the structured products mentioned in this document are not available to US persons under the relevant regulations. Please note that all telephone conversations with trading or sales units of the Zürcher Kantonalbank are recorded. By calling this number you consent tacitly to the recording.

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