UBS shares are traded on the New York Stock Exchange (NYSE) under the ticker symbol UBS. The stock is also listed on the Swiss exchange under the ticker UBSG.
UBS offers a comprehensive suite of financial services to private, corporate, and institutional clients. The company’s core business segments include Wealth Management, Personal and Corporate Banking, Investment Bank, and Asset Management.
UBS Share Price
UBS Group AG, commonly known as UBS, is a well-known Swiss investment bank and financial services company. The company was formed in 1998 when Union Bank of Switzerland (founded 1862) and Swiss Bank Corporation (founded 1872) merged to form UBS AG. The bank boasts a rich history in wealth management, investment banking, and asset management services. Today, it stands as one of the world’s leading wealth managers..
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Banking Industry Comparison
UBS EPS and Revenue Breakdown 2020-2023
| UBS | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | $1.77 | 32.24 billion |
| 2021 | $2.06 | $35.30 billion |
| 2022 | $2.25 | $34.56 billion |
| 2023 | $8.81 | $40.83 billion |
UBS Share Price & Dividend Yield
Despite a more recent pullback, UBS shares have performed well over the past couple of years. Since the lows in 2020, the stock has embarked on a strong rally. The company’s rescue of Credit Suisse, alongside solid results and share buybacks, has helped boost the stock.
UBS is a dividend-paying stock with a current dividend yield of 2.36%.
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UBS Share Price Forecast
In a note to clients, shares of UBS were downgraded to Neutral from Buy with a CHF 27 price target at Citi following the stock’s “sharp rally.” The firm states that “one really has to now look out beyond 2206 to try to justify the current multiple.” They add that Switzerland’s new capital proposals add further uncertainty on capital return. In addition, the current multiple “now gives little buffer for execution risk” related to the integration of Credit Suisse, according to Citi.
Exane BNP Paribas also recently downgraded UBS shares to Neutral from Outperform with a CHF 27 price target. Exane BNP also highlighted the new capital proposals as a headwind for UBS. While the shares have underperformed since the news, Exane BNP feels the impact could be more significant than that.
On the other hand, back in March, Morgan Stanley upgraded UBS to Overweight from Equal Weight, with a new price target of CHF 33, up from CHF 29 per share. Morgan Stanley said 2024 and 2025 will be transitional years for UBS as it executes on its merger with Credit Suisse. Even so, their analysis indicates that cyclically “the stars are aligned” for UBS’s investment banking and wealth management units to outperform.
Our View: UBS’s performance over the last couple of years and the business as a whole makes it an attractive investment. However, the new capital proposals do provide a potential headwind that investors should look further into before deciding on whether to buy UBS shares.
Suitability
There are many factors to consider when deciding on whether to invest in a stock such as UBS or any other, for that matter. However, aspects that are equally as important but not considered as much include your own characteristics, investment goals, and risk tolerance. Here are some elements to consider.
UBS has a strong track record and a diversified business model, making it suitable for investors seeking long-term capital appreciation. The wealth management sector is expected to see steady growth, potentially benefiting UBS.
UBS pays dividends, which can be a source of regular income for investors. The company’s dividend history and future payout potential should be considered when making your decision.
The financial services sector is subject to various risks, including economic fluctuations and regulatory changes. Investors comfortable with some volatility might find UBS suitable.
UBS is actively expanding its wealth management business in emerging markets, offering the potential for future growth. Investors seeking exposure to this growth might consider UBS.
