As previously reported, Citi analyst Andrew Coombs downgraded UBS to Neutral from Buy with a CHF 27 price target. Following the “sharp rally” in shares, which are up 42% over the past year, the firm contends that “one really has to now look out beyond 2206 to try to justify the current multiple.” Swiss authorities’ new capital proposals add greater uncertainty on capital return, while the current multiple “now gives little buffer for execution risk” related to the integration of Credit Suisse, the analyst added.
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