Investing.com — UBS Group AG (SIX:) shares posted their largest gain in two months, rising by as much as 3.8%, after analysts at BNP Paribas (OTC:) Exane upgraded their recommendation to “outperform” from “neutral,” citing expectations that the Swiss bank will boost share buybacks, Bloomberg News reported on Friday.
This move positioned UBS among Europe’s top performers on Friday. Exane analysts, including Jeremy Sigee, suggested that concerns over the impact of revised Swiss capital regulations are overstated.
These regulations, expected to be implemented in the first half of the year, have caused some market anxiety.
However, Sigee believes that UBS could mitigate the most concerning aspects of the proposals by releasing capital from its foreign subsidiaries.
While UBS is not expected to adopt the new capital rules in time for its upcoming full-year results next month, Sigee noted that the bank might offer more insight into potential capital releases, which could provide reassurance to investors, the report added.
Exane raised its price target for UBS to 35 Swiss francs, up from 27.5, factoring in larger anticipated share buybacks.
