KBW cuts UBS, Julius Baer to 'underperform' on expectation peak
BUZZ-KBW cuts UBS, Julius Baer to 'underperform' on expectation peak ** Investment banking and research firm Keefe, Buyette & Woods (KBW) downgrades Swiss bank UBS UBSG.S and local peer Julius Baer BAER.S to "underperform" from "market perform"
** Shares of UBS and Julius Baer are down about 2%, making them the bottom movers of their respective indices .SSMI and .SMIM
** "Shares are beginning to capture the inflection point, in our view, and are at risk of disappointing," Keefe, Buyette & Woods' analyst Thomas Hallet says
** Favourable regulatory outcomes are now priced in, the broker says
** Hallet warns about increased risk if assumptions of a CET1 ratio of 17% are warranted
** The analyst sees more upside for other European banks and points to consistent cross margins among foreign peers
(Reporting by Simon Ferdinand Eibach)
Recent news on UBS AG
See all newsGermany's PNE could be valued at more than $1.2 billion as bid deadline nears, sources say (updated)
Germany's PNE could be valued at more than $1.2 billion as bid deadline nears, sources say
KBW cuts UBS, Julius Baer to 'underperform' on expectation peak
Art Basel bets on digital art as medium for future generations
Majority of Swiss population backs stronger capital rules for UBS, poll finds