Friday, 17 March 2023 Reading time : 2 minutes

With increased uncertainty in the stock markets, it can be challenging to find investment opportunities with risk-reducing but still attractive characteristics. This is where barrier reverse convertibles with defensive parameters can be suitable. Increased volatility provides attractive option premiums while defensive barriers reduce the likelihood of a barrier being breached.

The shares of these three companies are rated "overweight" by ZKB Equity Research.

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10% p.a. (C)BRC on Sika, Swiss Life and Lonza

• BRC: 59% barrier
• Callable BRC: 50% barrier
• 12 months Maturity
• In subscription until March 22, 4:00 p.m.
• Termsheet BRC / CBRC

Sika will be able to complete the acquisition of construction chemicals company MBCC by mid-2023, thereby strengthening its own organization. The resulting sales growth and efficiency and synergy effects can further improve the already excellent market position.

Swiss Life presents a significant increase in net profit for 2022 compared to the previous financial year, continuing its positive trend. The outlook for the life insurance group remains positive thanks to operational improvements and good developments in the fee business, which is to be driven forward in the new strategy period.

Lonza achieved an EBITDA margin of just over 32% in the financial year, while EBITDA increased by almost 20%. Although the company's current growth projects are likely to put some temporary pressure on this margin in the current financial year, Lonza remains an investment case in the analyst consensus.

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Further products in subscription

Callable BRC on SMI®, Euro Stoxx 50® and S&P 500®

• 6.5% coupon p.a.
• 65% barrier
• 12 months maturity
• Termsheet

BRC on Nestlé, Novartis, Zurich, Richemont and UBS

• 8% coupon p.a.
• 49% barrier
• 12 months maturity
• Termsheet

All subscription products of Zürcher Kantonalbank

 

Disclaimer
This communication is for marketing purposes. It is neither an offer nor an invitation to submit an offer, to purchase or to subscribe to securities and does not constitute investment advice. You should consult your advisors before making an investment decision.
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.
The present document has not been drawn up by the research 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.
If securities are mentioned in the communication, 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, and from www.zkb.ch/finanzinformationen.