UBS: AlphaValue confirms Add rating

(CercleFinance.com) - AlphaValue confirms its "Add" rating on UBS shares, with a 6-month price target of 26.
1 CHF.

UBS reported a Q3 loss of $785m, a far cry from the $1.7bn profit posted a year ago. However, revenues rose to $11.7bn in Q3 2023, up 42% from Q3 2022.

AlphaValue believes that these mixed results were expected and are the result of the acquisition of Credit Suisse (CS).

In this respect, the broker points out that the comparison between Q3 2022 and Q3 2023 makes little sense, as UBS acquired CS in the meantime.

For AlphaValue, 2023 and 2024 will be transitional years for UBS, which will have to restructure following the CS transaction.

UBS made an emergency rescue of CS, although analysts believe that UBS negotiated advantageous terms because CS and the Swiss government/regulators were under pressure to find a solution at the time.

"Our guess is that, in 2023 and 2024, UBS will seek to cover as many risks from CS risk as possible and reach settlements of old CS litigation cases to clean books," the broker adds.


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