UBS cuts Cembra to 'sell' on profitability concerns

Cembra Money Bank AG

02/11/2026 09:56

** UBS downgrades Swiss consumer lender Cembra CMBN.S to "sell" from "neutral", saying profitability could fall short of the company's medium-term target
** The broker says slower growth in Swiss consumer finance, higher credit losses and rising funding costs could weigh on profitability, with return on equity peaking at 14.4% in 2028 versus company's target of at least 15% 
** UBS cuts its price target to CHF 78 from CHF 91.7 
** It also lowers its 2026-2027 EPS estimates by 10%-13%
** The stock is down around 8%, on track for its worst day since January 2025 
** Cembra is among worst performers on Europe's STOXX 600 index .STOXX

 (Reporting by Aleksandra Kret in Gdansk)
 ((aleksandra.kret@thomsonreuters.com))