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.


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