UBS Group’s (NYSE:UBS) deal to take over Credit Suisse (NYSE:CS) has raised questions about the former’s credit profile as rating agencies rushed to downgrade the UBS stock’s outlook to negative. In order to subside these concerns, UBS is offering to buy back bonds worth €2.75 billion issued on March 17.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
The concerned bonds include €1.5 billion 4.625% fixed rate notes due March 2028 and €1.25 billion 4.750% fixed rate notes due March 2032. The company has offered to buy these bonds for cash at their respective re-offer price.
With the bond buyback, UBS aims to boost investors’ confidence in the stock.
Is UBS a Good Buy?
UBS stock has a Moderate Buy consensus rating based on nine Buys, two Holds, and two Sells. The average price target of $25.29 implies 20.1% upside potential. Shares of the company have gained 14.5% over the past three months.
