UBS Group has received a significant upgrade from Bank of America, moving from a “neutral” rating to a “buy” rating, as noted in a research note released on Tuesday. The new target price for UBS shares is set at $60.30, a substantial increase from the previous estimate of $44.00. This adjustment indicates a potential upside of 34.50% based on the bank’s recent closing price.
This positive shift in rating is part of a broader analysis landscape for UBS Group. Other analysts have recently weighed in on the bank’s stock performance. For instance, on November 7, Keefe, Bruyette & Woods downgraded UBS from a “hold” to a “moderate sell” rating. Conversely, Weiss Ratings reaffirmed a “buy (b)” rating on October 8, while Zacks Research reduced its rating from “strong buy” to “hold” on November 14. In a more cautious stance, Citigroup maintained a “neutral” rating on November 3.
Currently, one analyst has issued a “Strong Buy” rating for UBS Group, while six others have assigned “Buy” ratings. Four analysts recommend a “Hold” rating, and one has issued a “Sell” rating. As it stands, UBS Group has an average rating of “Moderate Buy” with a consensus price target of $60.30, according to MarketBeat.
Recent Financial Performance
UBS Group reported its quarterly earnings on October 29, revealing an earnings per share (EPS) of $0.76, surpassing the consensus estimate of $0.48 by $0.28. The bank generated revenue of $12.76 billion during the quarter, significantly exceeding forecasts of $9.68 billion. This revenue reflects a year-over-year increase of 4.3%, with a net margin of 11.02% and a return on equity of 8.31%. In the same quarter of the previous year, UBS reported an EPS of $0.43.
Looking ahead, analysts predict that UBS Group will post an EPS of 1.90 for the current fiscal year.
Institutional Trading Activity
Recent activity among institutional investors indicates growing confidence in UBS Group. For example, Allworth Financial LP increased its stake in UBS by 4.2% during the third quarter, bringing its total to 7,115 shares valued at approximately $292,000 after acquiring an additional 288 shares.
Similarly, CIBC Private Wealth Group LLC expanded its holdings by an impressive 365.8%, now owning 12,133 shares worth about $497,000 following a purchase of 9,528 shares. Other notable moves include CIBC Bancorp USA Inc., which established a new position valued at around $470,000, and Coldstream Capital Management Inc., which boosted its stake by 4.3% to a total of 27,292 shares, worth roughly $1.12 million.
Overall, UBS Group AG operates across various divisions, offering financial advice and solutions to private, institutional, and corporate clients globally. Its comprehensive services include investment management, banking, and wealth planning, which position the firm strategically in the financial market.
As the financial landscape evolves, UBS Group’s recent upgrades and strong quarterly performance indicate a potentially favorable outlook for investors.
