Gold prices edge lower; heading for weekly losses ahead of U.S.-Russia talks
Investing.com - Deutsche Bank has raised its price target on UBS AG (SIX:UBSG) (NYSE:UBS) to CHF35.00 from CHF32.00 while maintaining a Buy rating on the stock. The banking giant, currently trading near its 52-week high of $39.71 with a market capitalization of $127 billion, has shown impressive momentum with a 34% gain year-to-date.
The research firm increased its forecasts for UBS by approximately 6% on average following the bank’s second-quarter 2025 results and new capital markets tailwinds.
Deutsche Bank noted that while most questions during UBS’s 2Q25 conference call still focused on capital concerns, the bank believes "it is time to move on" from these issues.
The firm acknowledged that the June proposal confirmed "a likely scenario close to the worst case outcome for UBS," but expressed confidence that UBS’s capital-generative business model would enable the bank to increase capital ratios over the next decade while simultaneously boosting capital returns.
Deutsche Bank highlighted that UBS currently trades at 9.5 times 2027 estimated earnings per share and offers an estimated 8.3% total yield for 2027.
In other recent news, UBS Group AG has been the focus of multiple analyst updates and regulatory discussions. BofA Securities upgraded UBS from Underperform to Neutral, raising its price target to CHF31.00, citing an improved outlook with expectations for earnings per share growth through 2028. Conversely, Morgan Stanley downgraded UBS from Equalweight to Underweight, reducing the price target to CHF26.00 due to capital concerns and revised buyback assumptions, leading to a 5% average reduction in estimated earnings per share for 2025-2028. RBC Capital also adjusted its price target for UBS to CHF29.00, maintaining an Outperform rating, in response to Switzerland’s "Too Big To Fail" regulatory proposal. Citi analysts maintained a Neutral rating with a price target of CHF26.90, noting the Swiss Federal Council’s new capital requirements, which impose a $26 billion CET1 requirement with a transition period of six to eight years. In other developments, UBS Group AG was included in a $5 billion debt deal for Elon Musk’s xAI Corp., joining Morgan Stanley, Barclays Plc, and Mitsubishi UFJ Financial Group Inc. in the financing arrangement. These recent developments highlight the ongoing adjustments and strategic positioning within UBS amidst regulatory changes and market opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.