UBS Group AG shares have scope to extend their recent outperformance, according to Goldman Sachs Group Inc. analysts, who on Wednesday raised their price target for the Swiss lender to a Street-high.
(Bloomberg) — UBS Group AG shares have scope to extend their recent outperformance, according to Goldman Sachs Group Inc. analysts, who on Wednesday raised their price target for the Swiss lender to a Street-high.
Goldman analysts led by Christopher Hallam see a further 50% upside for the stock after it rose by more than a third in the year to date. They increased their target to 35 Swiss francs from 25.80 Swiss francs.
UBS is integrating Credit Suisse months after it finalized a historic deal for its former rival that almost collapsed in March. After declining in the early part of the year amid the turmoil that banks faced in Europe and the US, UBS has since recovered and is among the best-performing lenders in Europe.
Hallam, who has a buy rating on UBS, sees additional guidance on the integration expected in upcoming results as a possible further key catalyst for shares. He increased his earnings per share estimate for the bank too and expects it to resume share repurchases with a $6 billion program in 2025, one year earlier than previously anticipated.
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