UBS Group AG (NYSE:UBS) is one of the best undervalued stocks to buy under $50. UBS Group AG (NYSE:UBS) was downgraded to Neutral from Outperform by BNP Paribas Exane on November 4 with a price target of CHF 32.
The same day, UBS Group AG reported strong fiscal Q3 2025 earnings, with diluted EPS of $0.76 and reported revenue rising 3% year-over-year to $12.76 billion. Profit before tax for the quarter was $2.828 billion and underlying PBT reached $3.590 billion. Both figures rose 47% and 50% year-over-year, respectively. Management attributed these positive results to growth in the company’s core business, with raised their combined underlying PBT excluding litigation by 19% year-over-year.
Net profit attributable to shareholders also rose 74% year-over-year to $2.481 billion, and included net litigation reserve releases of $668 million. This was primarily because of the resolution of legal matters associated with the Credit Suisse’s Residential Mortgage Backed Securities (RMBS) business along with UBS Group AG’s legacy cross-border activities in France.
Similarly, underlying revenues from the company’s core business rose 7%, attributed to UBS Group’s diversified global platform and broad-based client momentum. However, underlying revenues in non-core and legacy division of the company dropped by $304 million compared to fiscal Q3 2024, highlighting NCL progress in a significant reduction in its portfolio size.
UBS Group AG provides financial management solutions, with the company’s operations divided into the following segments: Global Wealth Management, Personal and Corporate Banking, Asset Management, Investment Bank, Non-Core and Legacy, and Group Items.
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This article is originally published at Insider Monkey.
