UBS: Deutsche Bank cuts TP, prefering to steer clear
(CercleFinance.com) - Deutsche Bank announced on Tuesday that it had reduced its target price for UBS from 28 CHF to 26 CHF , while renewing its 'hold' recommendation on the stock.
According to the analyst, Q2 results published by the Swiss private bank were 'mixed', with decent performances in investment banking but below expectations in wealth management and retail and corporate banking.
Deutsche Bank also points out that the cycle of falling interest rates is likely to penalize its earnings, despite the current strength of the Swiss franc.
Citing a less favourable mix to the detriment of historical activities, the broker explains that it prefers to stay away from the stock in view of its current valuation, with a share price trading at 10x earnings.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.
According to the analyst, Q2 results published by the Swiss private bank were 'mixed', with decent performances in investment banking but below expectations in wealth management and retail and corporate banking.
Deutsche Bank also points out that the cycle of falling interest rates is likely to penalize its earnings, despite the current strength of the Swiss franc.
Citing a less favourable mix to the detriment of historical activities, the broker explains that it prefers to stay away from the stock in view of its current valuation, with a share price trading at 10x earnings.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The information and analyses published by Cercle Finance are intended solely as decision-making aids for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.