UBS Group (NYSE:UBS) announced that its former CEO, Sergio P. Ermotti, is once again taking over the reins of the company, effective April 5, 2023. The company is bringing him back to oversee the $3.2 billion Credit Suisse Group (CS) takeover. In the early hours of Wednesday, shares of the Swiss investment bank were trading 3% higher.
Ermotti, who is currently the Chairman of Swiss Re, will return to the bank after the annual general meeting next week. He will succeed the current CEO of UBS, Ralph Hamers, who has only held the position for two years. Hamers will remain at the bank throughout the transition.
It is worth mentioning that Ermotti led UBS for nine years, from November 2011 to October 2020. During his tenure, Ermotti helped improve UBS’ position after the considerable losses incurred in the 2008 financial crisis. Moreover, his plan to cut down the investment bank’s footprint and focus on less risky business helped boost the confidence of customers and other stakeholders.
While the integration of the Government-orchestrated Credit Suisse acquisition seems like a complex task, it provides UBS with significant opportunities to expand the wealth management business.
In a statement, Ermotti said, “The task at hand is an urgent and challenging one. In order to do it in a sustainable and successful way, and in the interest of all stakeholders involved, we need to thoughtfully and systematically assess all options.”
What is the Price Target for UBS Stock?
Analysts’ average price target of $25.78 implies 33.8% upside potential. UBS stock has a Moderate Buy consensus rating on TipRanks based on eight Buy, three Hold, and two Sell recommendations.