UBS Group AG (UBS) Gets Jefferies Upgrade as Capital Outlook Clears

On Tuesday, analysts at Jefferies upgraded UBS Group AG (NYSE:UBS) from Hold to Buy, while raising the price target to CHF 37.00, up from CHF 22.00, reflecting a 41% upside. Given the expected returns from capital clarity, the financial institution, with a market capitalization of $101.786 billion, is expected to continue exhibiting strong performance.

The foundation of the analysts’ bullish case for UBS Group AG (NYSE:UBS) is the company’s earnings trajectory, implying that earnings are poised for an upward trend. With a forecast of a 15% return on tangible equity (ROTE) expansion by 2027, there’s no doubt that the company is embarking on a long yet promising journey. Adding to this is the company’s solid track record of dividend payments, which is definitely an added win for the investors.

A financial advisor shaking hands with a client, representing the wealth management services of the company.

The analysts have outlined a considerable margin of safety in UBS Group AG (NYSE:UBS) shares, associating it with robust capital generation. While the shares currently reflect a “downside scenario” on capital, impacting their relative value by nearly $50 billion since April of 2024, greater clarity around capital on June 6 will likely complement the positive earnings guidance. This integration will support the stock’s climb.

With plans to capitalize on its presence in the Middle East, the giant’s efforts support the analysts’ outlook. The firm is tapping into the opportunities stemming from the wealth migration trend from rich countries, like the UK, to low-tax regions such as the Middle East.

UBS Group AG (NYSE:UBS) is a leading Swiss financial service provider offering financial management solutions to private, institutional, and corporate clients all around the globe. Founded in 1892, the company aims to create value for its clients, emphasizing wealth management, asset management, and investment banking.

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