2024-06-17 10:15:14 ET
Summary
- UBS Group AG shows strong financial results but faces risks of trust erosion among UHNWIs, potential regulatory changes, and ongoing integration challenges.
- Despite positive Q1 performance, the sustainability of growth is questioned due to non-repeatable gains and client retention concerns.
- Usmanov sues UBS, threatening Swiss banks' reputation and potentially scaring off potential HNWIs - the reputational risks for UBS are rising, in my view.
- UBS stock is overvalued compared to peers, with high P/E multiples and optimistic forecasts overlooking significant risks, warranting a "Sell" rating.
My Thesis
Read the full article on Seeking Alpha
For further details see:
UBS Group: Why I Won't Buy This Rally