6 big analyst calls today: UBS gets mixed reaction after Credit Suisse | Pro Recap
Investing.com | Author Davit Kirakosyan
Published Mar 20, 2023 13:50
By Davit Kirakosyan
Investing.com -- Here is your daily Pro Recap of the biggest analyst rating changes you may have missed on since Friday’s close.
UBS earns rating changes following Credit Suisse acquisition announcement /h2
UBS Group (SIX:UBSG) received one analyst upgrade and two downgrades after announcing its acquisition of Credit Suisse (SIX:CSGN) for around $3.3 billion with the help of Swiss regulators.
Swiss authorities oversaw tense negotiations over the weekend due to concerns about the health of the Swiss banking system and the potential for contagion in global markets. Credit Suisse, which is Switzerland's second-largest bank after UBS, had been approaching the brink of collapse despite receiving an emergency credit line from the Swiss National Bank last week.
ODDO BHF downgraded UBS to Underperform from Neutral, noting "very limited due diligence" around the merger deal and the impact the integration of Credit Suisse's operations will have on its growth initiatives.
KBW downgraded the bank to Underperform from Market Perform, noting, in particular the suspension of UBS' share buybacks, which it believes was a key part of the investment thesis in the company. They warned as well that the Swiss government's decision to write off $17B in Credit Suisse's additional tier-one debt will "unsettle" some investors.
Meanwhile, BofA Securities upgraded UBS to Buy from Neutral.
UBS shares are currently trading more than 7% lower on the Swiss Stock Exchange, while Credit Suisse plunged another 60% this morning after experiencing heavy selling last week.
As always, InvestingPro subscribers got this news first.
Get The App
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.