Financial analysts at Credit Suisse reduced their rating on UBS shares in a European banking sector report. They also lowered the target price.
Credit Suisse lowered its rating on UBS shares to «Neutral» from «Outperform» and lowered the price target by one Swiss franc to 21, according to a note by the bank's analysts. The target is still above the current price of UBS of 16.89 francs, so they still see upside potential.
Overall, Credit Suisse expects UBS results will be above the industry average next year, but the current view reflects assumptions for a weaker dollar.
Growth in Customer Assets
The bank's house view on the equity markets in 2023 in general is very cautious. That is why analysts do not expect high growth in banks' client assets under management. However, since the profit forecasts of Swiss banks are very much dependent on the level of this key figure, the analysts do not expect a catalyst for higher profit estimates.
This view also applies to other banks heavily dependent on wealth management such as Julius Baer. The Credit Suisse analysts downgraded the shares of the Zurich wealth manager to «Neutral» from «Outperform.»
As top stocks in the European banking sector, they recommend the shares of France's BNP Paribas, Spain's Santander, the UK's Lloyds, Italy's Unicredit, and the Netherlands' ABN Amro.
