Analyst Giulia Miotto from Morgan Stanley maintained a Sell rating on UBS Group AG and keeping the price target at CHF27.00.
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Giulia Miotto has given her Sell rating due to a combination of factors that suggest UBS Group AG’s stock is currently not an attractive investment. The primary concern is the significant capital headwind UBS faces, even after implementing mitigating actions. This challenge makes the bank’s valuation less appealing compared to its European peers, with UBS trading at 1.5 times its 2025 price-to-tangible net asset value for an expected 13% return on tangible equity by 2027.
Additionally, the capital proposal put forth by UBS is not aligned with international standards, placing the bank at a disadvantage relative to its global competitors. While there is potential for a positive shift if the proposal is revised, uncertainty is expected to persist for at least another six months. This lack of clarity contrasts with the more stable capital rules and higher capital distribution seen among UBS’s peers, further supporting the Sell rating.