UBS has maintained a "Neutral" rating for L'Oréal with a target price of 440 euros. Analyst Guillaume Delmas highlighted concerns in the cosmetics sector, noting that Coty's sales outlook for the first quarter fell short of expectations, particularly due to weakened growth in the US market.
The Swiss Financial Market Supervisory Authority has mandated UBS to enhance its crisis contingency plan following its acquisition of Credit Suisse. UBS must develop a more comprehensive liquidation strategy that allows for market exit options without jeopardizing systemic stability or relying on taxpayer funds. Additionally, Finma has suspended the annual evaluation of the bank's stabilization and liquidation plans for this year.
U.S. pre-market trading saw Etsy drop over 4% after a Goldman Sachs downgrade, while Coty fell more than 2% following disappointing preliminary results. In contrast, Doximity gained over 3% after an upgrade from Barclays. In corporate news, Ericsson surged over 8% on strong Q3 earnings, while Asian markets were mixed, with China's Shanghai Composite down 2.53% amid economic concerns, and Japan's Nikkei 225 up 0.77% on a weaker yen and positive Wall Street momentum.
China's recent interest rate cuts and liquidity measures aim to boost lending and stabilize the economy, yet the real estate sector remains under significant pressure despite government interventions. Special government bonds are being issued to finance long-term infrastructure projects, with a focus on stimulating consumer demand. While short-term market reactions are positive, sustainable recovery hinges on targeted measures to enhance household consumption and business confidence.
UBS has reduced its price target for Vinci from 134 to 131 euros while maintaining a "buy" rating ahead of the company's third-quarter results. Analyst Gregor Kuglitsch anticipates that Vinci will meet expectations, although order intake is expected to have significantly declined compared to last year due to a number of major orders received previously.
The European life sciences real estate market faces a critical shortage, with vacancy rates in wet labs around 5% and a 30% unmet demand for space. Despite a 40% drop in venture capital funding, rental growth remains strong, particularly in Cambridge and Oxford, as governments push for improved supply chain security and increased domestic production of critical medicines. This shift presents significant investment opportunities for real estate focused on the pharmaceutical sector.
UBS has initiated coverage of Groupe Seb with a Buy recommendation and a price target of €138. The broker anticipates a normalization of margins this year, followed by further improvements in the coming years, highlighting Seb's strong position to benefit from favorable long-term consumer trends.
UBS has initiated a Buy rating on Elis, setting a target price of €27. The firm highlights the company's resilience and strong leadership, noting that recent deleveraging provides opportunities for shareholder returns or potential mergers and acquisitions.
UBS has initiated a Buy rating on Elis, setting a target price of €27. The firm highlights the company's resilience and strong leadership, noting that recent deleveraging provides opportunities for shareholder returns or potential mergers and acquisitions.
UBS is under scrutiny from the Financial Market Authority regarding its preparedness for a potential crisis, as its failure could destabilize the entire Swiss financial system. The investigation revealed that UBS must implement improvements to better manage emergency situations.