UBS: Berenberg drops 'buy' rating'
(CercleFinance.com) - Berenberg has downgraded its recommendation on the UBS share from "buy" to "hold," even though it has nudged up its corresponding target price from 10.
5 Swiss francs to 11 Swiss francs, suggesting that investors "Pause for breath" on the share.
"UBS is among the best-performing banks in our coverage ytd as its business mix and lower credit risk business model, along with its ability to pay a dividend, has enabled it to outperform," the broker points out.
"However, the precarious economic backdrop, combined with headwinds from lower-for-longer rates and lower invested assets, means we struggle to find much additional upside," it continues.
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