Analyst Coverage Change
On March 20, 2023, UBS Securities, the Swiss multinational investment bank, announced its acquisition of Credit Suisse bank, in a move that is expected to significantly expand its global reach and strengthen its position in the financial services industry. Following this news, several analysts have revised their ratings and target prices for UBS Securities, with a mix of upgrades and downgrades.
Oddo & Cie, a French financial services company, downgraded UBS Securities to “Underperform” from its previous rating of “Neutral.” The downgrade was attributed to concerns about the potential risks associated with the acquisition of Credit Suisse, including the integration process and the potential impact on UBS Securities’ financial performance.
Societe Generale, a French multinational investment bank, also downgraded UBS Securities to a “Hold” rating from its previous rating of “Buy.” The downgrade was based on concerns about the valuation of UBS Securities’ stock following the acquisition of Credit Suisse, as well as concerns about the potential impact on the company’s earnings.
Keefe, Bruyette & Woods, an American investment bank, also downgraded UBS Securities to “Underperform” from its previous rating of “Market Perform.” The downgrade was attributed to concerns about the impact of the acquisition on UBS Securities’ profitability, as well as the potential risks associated with the integration process.
On the other hand, Bank of America Merrill Lynch upgraded UBS Securities to a “Buy” rating from its previous rating of “Neutral.” The upgrade was based on the bank’s belief that the acquisition of Credit Suisse would significantly strengthen UBS Securities’ position in the global financial services industry, and drive long-term growth for the company.
Finally, STA Research assigned a “Underperform” rating to UBS Securities, citing concerns about the potential risks associated with the acquisition of Credit Suisse, as well as the potential impact on the company’s earnings and profitability.
The analyst rating changes on UBS Securities following its acquisition of Credit Suisse reflect a mix of positive and negative sentiment from the investment community. While some analysts have expressed concerns about the potential risks associated with the acquisition, others are optimistic about the long-term growth prospects for UBS Securities.
