UBS Group Retains Outperform Ranking at RBC Regardless of TBTF Regulatory Considerations

UBS Group AG (NYSE:UBS) ranks among the many greatest basic shares to purchase in keeping with hedge funds. RBC Capital retained its Outperform score on UBS Group AG (NYSE:UBS), however lowered its worth goal for the Swiss banking behemoth from CHF31.50 to CHF29 on June 19. The transfer seems as a response to the present “Too Huge To Fail” (TBTF) regulatory plan in Switzerland, which RBC Capital believes to be a “worst case” scenario for the financial institution.

RBC Capital cites the proposal’s longer implementation interval as a mitigating issue, indicating that UBS would possibly take in the regulatory adjustments with out additional decreasing shareholder payouts. Though the brand new worth goal remains to be greater than UBS’s present share worth, the agency’s valuation methodology was modified to account for what it refers to as a “harsher final result” on deferred tax belongings and software program.

Whereas acknowledging that it’ll “take time to have full visibility” on the scenario, RBC Capital believes there may be potential for a greater outcome for UBS Group AG (NYSE:UBS) regardless of instant regulatory challenges.

World monetary providers firm UBS Group AG (NYSE:UBS) provides a variety of providers, together with funding banking and wealth administration, to people, companies, and establishments.

Whereas we acknowledge the potential of UBS as an funding, we consider sure AI shares supply better upside potential and carry much less draw back danger. If you happen to’re on the lookout for a particularly undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the greatest short-term AI inventory.

Learn Extra: 10 Finest Magic System Shares for 2025 and 10 Finest Retirement Shares to Purchase In line with Hedge Funds

Disclosure: None.