Despite some geopolitical headwinds, Swiss bank UBS (UBS) expects a global rally in stocks this year.
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Analysts at the bank see stocks around the world rising as performance widens beyond mega-cap technology companies such as Alphabet (GOOGL) and Nvidia (NVDA), and into more cyclical parts of the market.
In a new report, UBS writes that, “global equities continue to grind higher, albeit at a slower pace,” but stresses that “performance continued to broaden, with cyclical regions and sectors sharply outperforming recently.” UBS says stocks in the U.S., Asia and Europe should benefit in coming months from a powerful mix of catalysts.
AI Still a Tailwind for Stocks
UBS still sees artificial intelligence (AI) as an “important tailwind” for the global market, especially as the focus among players in the space shifts to monetization. However, global markets should also benefit from easing tariff risks, further interest rate cuts, and supportive fiscal policies around the world.
UBS adds that the “rare combination of supportive monetary and fiscal policies” should underpin corporate earnings in 2026, with the bank forecasting “close to 12% EPS growth for MSCI AC World” stocks and expecting performance to broaden throughout the year ahead.
Is UBS Stock a Buy?
UBS stock has a consensus Moderate Buy rating among 13 Wall Street analysts. That rating is based on eight Buy, two Hold, and three Sell recommendations issued in the last three months. The average UBS price target of $47.07 implies 0.92% downside from current levels.
