UBS Group: Oddo edges up target price

(CercleFinance.com) - Oddo reiterates its "neutral" rating commendation on UBS Group shares, although has increased its corresponding target price from 14.
1 Swiss francs to 14.5 Swiss francs.

The broker believes that although the Prime Brokerage “accident” should not be extrapolated, its indirect consequences could nevertheless weigh on future revenues. In addition, the reputational risk cannot be totally ignored, even though analysts believe that this remains limited, they add.

Oddo also believes that the valuation parameters that the market is applying to UBS leave little room for a rerating in the current context (Prime Brokerage accident and litigation in France), even retaining the consensus forecasts that higher than their own forecasts.

All said, the analyst is trimming his underlying earnings estimates by a modest amount, i.e. -2.1% for 2021 and +2.6% in 2022.

Note that the share is down 3% on Tuesday afternoon at about 13.6 Swiss francs, underperforming a Swiss market that is down about 1.5%.


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