Analyst Chris Hallam from Goldman Sachs maintained a Buy rating on UBS Group AG and increased the price target to CHF33.50 from CHF32.50.
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Chris Hallam’s rating is based on several positive indicators for UBS Group AG. The company is expected to show improved profitability in the upcoming quarter, benefiting from a release of litigation provisions and a tax credit. Additionally, UBS’s Assets under Management (AuM) are projected to rise due to higher equity market levels, which is a positive sign for their Global Wealth Management division.
Furthermore, UBS is actively engaged in a $2 billion buyback program, indicating confidence in its financial health. The company’s Common Equity Tier 1 (CET1) ratio is anticipated to increase slightly, reflecting a strong capital position. Despite some seasonal outflows, UBS is on track to meet its net new assets target for the fiscal year, and the recent weakening of the USD is expected to have only a modest impact on operating expenses. These factors collectively contribute to the Buy rating assigned by Chris Hallam.
Hallam covers the Financial sector, focusing on stocks such as HSBC Holdings, UBS Group AG, and Banco Santander. According to TipRanks, Hallam has an average return of 25.0% and a 77.74% success rate on recommended stocks.
In another report released on July 3, RBC Capital also maintained a Buy rating on the stock with a CHF29.00 price target.