UBS: stock helped by analyst upgrade
(CercleFinance.com) - UBS shares rose in Zurich on Wednesday after the broker RBC upgrade its rating on the stock to "outperform" from "equal weight".
The broker also raised its target price for the stock to 19 Swiss francs (from 17.5 francs).
At lunchtime, UBS shares were up about 1%, in line with the Swiss index.
In its comments, RBC justified its upgrade due to the share's depressed valuation, catalysts promising an upcoming improvement in profitability and the prospect of further capital redistributions.
The Canadian broker also believes that Q3 will probably lead to increases in the consensus, due to seasonal effects, while exposure to rising US interest rates should support earnings.
RBC also said that the Swiss banking group is well positioned to take advantage of opportunities that may arise in ESG issues.
The UBS share has recovered over 20% of its value since the beginning of the year.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The broker also raised its target price for the stock to 19 Swiss francs (from 17.5 francs).
At lunchtime, UBS shares were up about 1%, in line with the Swiss index.
In its comments, RBC justified its upgrade due to the share's depressed valuation, catalysts promising an upcoming improvement in profitability and the prospect of further capital redistributions.
The Canadian broker also believes that Q3 will probably lead to increases in the consensus, due to seasonal effects, while exposure to rising US interest rates should support earnings.
RBC also said that the Swiss banking group is well positioned to take advantage of opportunities that may arise in ESG issues.
The UBS share has recovered over 20% of its value since the beginning of the year.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.