UBS Group’s (NYSE:UBS) long-time shareholder, Norges Bank Investment Management (NBIM), raised its stake in the Swiss lender to over 5% this month from 3.31% at the end of 2022. It is worth mentioning that NBIM manages around $1.4 trillion of assets of Norway’s Sovereign Wealth Fund.
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With its increased UBS holdings, NBIM has surpassed Dodge & Cox in ownership with its 5% stake but remains slightly below BlackRock (BLK), which owns around 5.01% of UBS shares. All three investors, NBIM, Dodge & Cox, and BlackRock, are among UBS’ top 10 shareholders.
NBIM’s increased investment in UBS coincides with ongoing concerns about the company’s ability to manage the complex integration process following the Credit Suisse bailout earlier this year.
Nevertheless, UBS impressed investors with its second-quarter results, released on August 31. The company disclosed a net profit of $29 billion, setting a record for the largest quarterly profit ever reported by a bank, thanks to an accounting gain related to the Credit Suisse acquisition.
Looking ahead, UBS expects to achieve over $10 billion in cost savings by the end of 2026, in comparison to its previous estimate of $8 billion by 2027. Additionally, the company foresees the integration process to be largely finalized by the close of 2026.
Is UBS a Good Buy?
On TipRanks, UBS stock has a Moderate Buy consensus rating based on five Buys, four Holds, and one Sell rating. The average UBS Group price forecast of $25.93 implies 1.2% upside potential from current levels. Meanwhile, UBS stock is up nearly 39% year-to-date.
Investors looking for the most accurate analyst for UBS could follow Deutsche Bank analyst Benjamin Goy. Copying his trades on this stock and holding each position for one year could result in 93% of your transactions generating a profit, with an average return of an impressive 23.7% per trade.
