UBS Maintains Buy Rating on Inter & Co with Raised PT to $9.2

UBS Maintains Buy Rating on Inter & Co with Raised PT to $9.2

UBS Group AG (UBS) has maintained its buy rating on Inter & Co, raising its price target (PT) to $9.2. The decision reflects UBS's robust financial performance and strategic initiatives, particularly its successful integration of Credit Suisse and strategic partnerships.

Over the past three months, UBS shares have gained 21.7%, outperforming the industry average of 12.3%. The stock's recent rally is partly attributed to its strong second-quarter 2025 performance, with net profit attributable to shareholders surging to $2.39 billion from $1.14 billion a year earlier. Revenues increased by 1.7% year over year to $12.11 billion, while operating expenses fell by 5.6% to $9.75 billion [1].

UBS's strategic expansion and partnerships have also contributed to its momentum. In April 2025, UBS partnered with 360 ONE WAM Ltd, India's leading wealth and asset manager. In June 2023, UBS completed the acquisition of Credit Suisse, enhancing its wealth and asset management capabilities. These moves are expected to strengthen UBS’s presence in key markets and support long-term growth [1].

The company's solid capital position is another key factor. As of June 30, 2025, UBS's CET1 capital ratio stood at 14.4%, above management guidance. UBS aims to achieve an underlying return on CET1 capital of approximately 15% by 2026-end and 18% by 2028-end, underpinning its ability to navigate macro uncertainty and pursue growth [1].

However, UBS faces challenges such as rising expenses and concerns about the sustainability of its capital distribution. Operating expenses have registered a 14.3% CAGR over the past four years, driven by integration costs and technology investments. The company's debt-to-equity ratio of 3.77 is also relatively high compared to industry peers [1].

Despite these challenges, UBS's strong financial performance and strategic initiatives position it for long-term growth. The company's consistent revenue growth and solid earnings estimates support this view. Currently, UBS sports a Zacks Rank #1 (Strong Buy) [1].

References:
[1] https://www.barchart.com/story/news/34054758/ubs-group-touches-52-week-high-should-you-buy-the-stock-now