5 Most Undervalued Bank Stocks To Buy According To Analysts

In this article, we discuss 5 most undervalued bank stocks to buy. If you want to read our discussion on the banking industry, head directly to 12 Most Undervalued Bank Stocks To Buy According To Analysts. 

5. UBS Group AG (NYSE:UBS)

Number of Hedge Fund Holders: 35

PE Ratio as of March 4: 3.27

Average Upside Potential: 16.73%

Average Analyst Price Target: $33.62

UBS Group AG (NYSE:UBS) is a global financial institution that offers financial advice and solutions to private, institutional, and corporate clients. It operates through four divisions – Global Wealth Management, Personal & Corporate Banking, Asset Management, and Investment Bank. On February 6, UBS Group AG (NYSE:UBS)’s board of directors proposed a $0.70 per share dividend, marking a 27% year-over-year increase in the ordinary dividend from 2023. The dividend will be paid on May 3, to shareholders on record as of May 2.
According to Insider Monkey’s fourth quarter database, 35 hedge funds were bullish on UBS Group AG (NYSE:UBS), compared to 33 funds in the last quarter. Cevian Capital is the biggest stakeholder of the company, with 43.7 million shares worth $1.35 billion. 

Patient Capital Management stated the following regarding UBS Group AG (NYSE:UBS) in its fourth quarter 2023 investor letter:

“UBS Group AG (NYSE:UBS) is a name we opportunistically purchased following the banking crisis earlier in the year. UBS benefited from buying its largest local competitor, Credit Suisse, for an 80% discount from where it was trading before the crisis. We bought after the deal, believing the market’s myopic focus on short-term integration risks failed to properly value the attractive set of assets. While the stock has done well since then, we still believe it is underappreciating the long-term return potential of the business.”