Jefferies said that UBS Group’s stock price could rise to its highest level since 2007, driven by the profitability of its wealth management and investment banking businesses.
Analyst Joseph Dickson raised his price target to 60 Swiss francs, the highest among those tracked by Bloomberg, while maintaining a buy rating. The new target implies about a 50% upside from Wednesday’s closing price, bringing the stock close to its pre-global financial crisis level. Over the past 12 months, the stock has risen approximately 60%.
Dixon wrote in a report that second-quarter results could reinforce the firm’s highly bullish stance on the stock, noting that the bank’s wealth management business in the U.S. continues to gain momentum, its Asian wealth management operations are performing strongly, and its investment banking division “has the right mix.”
2026 is undoubtedly a prosperous year for investment banks. Driven by record-breaking debut performances of artificial intelligence companies and SpaceX, the U.S. stock capital markets are experiencing an unprecedented wave of new listings. In the mergers and acquisitions space, Goldman Sachs has participated in over $1 trillion in transactions, setting the fastest record for any bank to reach this milestone.
Dixon said that the first quarter was the most profitable ever for UBS’s investment banking division, “and the market backdrop remains very solid,” with the bank being highly active in equity capital markets (ECM), particularly in the United States and Asia.
Nevertheless, UBS’s stock performance has lagged behind its peers, rising just 11% year to date—slightly below the STOXX 600 Banks Index. The Swiss banking giant has missed some of the gains seen by other European banks in recent years, as uncertainty over tighter capital requirements has dampened investor enthusiasm.
Swiss lawmakers continue discussing regulatory reforms following UBS’s emergency takeover of Credit Suisse in 2023.
Dixon wrote that UBS could face outcomes ranging from no need for additional common equity capital to, in the worst case, having to raise tens of billions of dollars. His assessment is based on recent signs suggesting that parliamentary debate in Switzerland may lead to a more moderate capital regulatory path.
He added that the stock is currently valued at about 1.4 times Jefferies’ 2028 tangible book value forecast, failing to fully reflect the range of potential outcomes.
On Thursday, UBS Group’s stock in Zurich rose as much as 2.1%, reaching its highest level since February 2008.
