UPDATE: Societe Generale Downgrades UBS to Sell on Uncertainty of Future Revenue Streams
In a report published on Tuesday, Societe Generale analyst Dominio Watt downgraded UBS (NYSE: UBS) from Hold to Sell and lowered the price target from $16.39 to $15.37
In the report, Societe Generale stated, "When UBS announced its accelerated strategy in October 2012 we increased our target price despite a sharp cut to the EPS outlook, because we expected a significant return of capital to shareholders over time and a reduction in the cost of equity by 1%. This view has been shared by the market, which is now ascribing a significant premium to UBS expecting the bank to become almost a pure wealth and asset manager."
UBS closed Friday at $17.97.
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