UBS Stock Forecast: A Comprehensive Analysis

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As we dive into the world of UBS stock forecast, it's essential to understand the bank's current financial situation. UBS Group AG reported a net profit of 6.6 billion Swiss francs in 2020, a significant increase from the previous year.

The bank's revenue growth can be attributed to its strong investment banking business, which generated 8.4 billion Swiss francs in revenue. This is a notable improvement from 2019, when investment banking revenue was 6.4 billion Swiss francs.

UBS's financial health is also reflected in its asset quality, with a non-performing loan ratio of 0.3% at the end of 2020. This is a testament to the bank's effective risk management and loan portfolio quality.

In terms of market performance, UBS stock has been relatively stable in recent years, with a 5-year average annual return of 5.2%. This is a decent performance considering the overall market volatility during this period.

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Analyst Insights

Analysts covering UBS Group AG include Deutsche Bank Research, Goldman Sachs, and RBC, among others. These firms have assigned analysts to cover the company, such as Benjamin Goy and Chris Hallam.

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UBS Group AG has received analyst upgrades and downgrades, with Keefe Bruyette & Woods upgrading the company to Moderate Sell in September 2024. Goldman Sachs analyst Chris Hallam maintained a Strong Buy rating in June 2024.

Analysts forecast UBS Group AG's earnings to grow at a rate of 25.6% per year, outpacing the Swiss market's growth rate of 11.2% per year. This suggests that the company's earnings are expected to grow faster than the broader market.

Here is a list of analyst firms that cover UBS Group AG:

  • Deutsche Bank Research
  • Goldman Sachs
  • RBC
  • Keefe Bruyette & Woods
  • Exane BNP Paribas
  • Barclays
  • Citigroup
  • HSBC
  • ODDO BHF
  • BAADER BANK
  • MERRILL LYNCH

UBS Group AG's revenue is forecast to grow at a rate of 1.6% per year, slower than the Swiss market's growth rate of 4.1% per year. This suggests that the company's revenue is expected to grow slower than the broader market.

UBS Stock Performance

UBS stock has seen significant fluctuations over the past few years, with its value declining by over 35% between February 2018 and February 2020 due to weaker profits.

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The share price plummeted from around $13 to $8 as investors feared financial market disruption from the coronavirus pandemic.

However, the financial markets proved resilient, and UBS share value rose over the second half of 2020, recovering its pre-pandemic value by November 2020.

UBS stock saw sustained price growth in 2021, with prices rising from $14 to $18.

The bank's Q3 results release in October 2021 saw pre-tax profits of $2.9bn, an increase of 11% year on year, which led to a share price jump of over 4%.

UBS's Q4 announcement on 1 February 2022 also saw a positive reaction from the market, with the share price rising by 9.27% on the day of its results release.

The relative strength index (RSI) for UBS shares repeatedly pushed to 70 over the course of 2021, indicating the stock was overvalued or overbought, but is currently neutral at 46.

Analysts currently rate UBS stock as a consensus 'buy', with 10 'buy', four 'hold' and zero 'sell' ratings.

Additional reading: Stock Price

Company Information

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The UBS Group AG has been in an uptrend since 2000-May-16.

Our data indicates that the asset price has been rising since then.

The current price of UBS is $31.63 as of 2024-Nov-16.

About UBS

UBS has been in an uptrend since 2000-May-16.

The current price of UBS stock as of 2024-Nov-16 is $31.63.

Our data suggests that similar market segments were very popular in the given time frame.

According to our prediction system, the future price of UBS asset is predicted at $38.06 (20.33%) after a year.

If you invested $100 now, your current investment may be worth $120.33 on 2025-Nov-16.

Key Information

The key information you need to know about a company can make all the difference in making an informed investment decision. Here are some essential facts to consider.

Capital markets earnings growth is a crucial metric, and in this case, it's a respectable 21.2%. This suggests the company is performing well financially.

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Revenue growth rate is another important indicator, and in this instance, it's a relatively modest 1.6%. This could indicate a stable, rather than rapidly expanding, business.

Future return on equity is a significant consideration for investors, and here it's projected to be 11.3%. This could be a good sign for those looking for a solid return on their investment.

Analyst coverage is also worth noting, and in this case, it's described as "good". This suggests that the company's financials and prospects are being closely watched by industry experts.

The last update on this information was on November 12, 2024. It's essential to keep your information up to date to make informed decisions.

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Financial Data

The financial data for UBS stock is a mixed bag, but let's dive in and take a closer look. The company's revenue has been steadily increasing over the years, with a notable spike in 2022, reaching $36,274 million in June of that year.

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One of the most interesting trends in UBS's financial data is the fluctuation in earnings. In 2023, earnings were $31,746 million in June, but then dropped to $6,523 million in March of the same year. This volatility could be a concern for investors.

Here's a breakdown of UBS's earnings and revenue growth over the past few years:

Keep in mind that these numbers are subject to change and may not reflect the company's current financial situation. It's always a good idea to do your own research and consult with a financial advisor before making any investment decisions.

Earnings and Revenue

The company's revenue has been steadily increasing over the years, with a notable jump from $28,927 million in 2019 to $31,142 million in 2013.

In 2023, the company's revenue was $39,613 million, with a slight decrease from $39,613 million in 2023 to $36,851 million in 2023.

The company's earnings have also been on the rise, with a significant increase from $4,304 million in 2019 to $27,849 million in 2023.

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In 2024, the company's earnings were $4,836 million, with a notable decrease from $4,836 million in 2024 to $2,379 million in 2024.

Here's a breakdown of the company's revenue and earnings over the years:

The company's revenue and earnings have been fluctuating over the years, with some periods showing significant growth and others showing decline.

Return on Equity

Return on Equity is a crucial metric for investors to understand. UBSG's Return on Equity is forecast to be low in 3 years time, at 11.3%.

This means that the bank's profit will not be growing as quickly as its equity. It's essential to consider this when evaluating the bank's financial health.

The low forecasted ROE indicates that the bank may not be generating enough profits to sustain its growth. This could be a red flag for potential investors.

To put this in perspective, a low ROE can be a sign of inefficient use of capital or a lack of competitive advantage.

Eric Hintz

Lead Assigning Editor

Eric Hintz is a seasoned Assigning Editor with a keen eye for detail and a passion for storytelling. With a background in journalism, Eric has honed his skills in selecting and assigning compelling articles that captivate readers. As a seasoned editor, Eric has a proven track record of identifying emerging trends and topics, including the inner workings of major financial institutions, such as "Banking Headquarters".

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