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UBS shares fell by 2.0% to CHF 26.34 in afternoon trading, making it one of the SMI's biggest losers. The stock reached a 52-week high of CHF 29.57 on October 30, 2024, and has a dividend forecast of USD 0.819 for the current year, up from CHF 0.640 last year. UBS is set to release its Q4 2024 results on February 4, 2025, with analysts predicting earnings per share of USD 1.75 for 2024.
A parliamentary investigation has concluded that Credit Suisse is primarily to blame for its collapse in spring 2023, citing a loss of 33.7 billion francs over twelve years while paying out 39.8 billion francs in performance bonuses. The report criticized the Financial Market Authority for ineffective supervision and called for clearer regulations for systemically important banks. Following its difficulties, Credit Suisse was sold to UBS in an emergency sale, averting fears of a global financial crisis.
Whale activity and reduced exchange reserves indicate bullish sentiment for Chainlink (LINK), currently priced at $24.63 after a 9.11% drop. The asset faces resistance at $24-$25, with potential for a breakout towards $30.99 if it maintains upward momentum; otherwise, it may retest the $22 support zone.
U.S. stock futures are down as investors brace for a potential government shutdown and await inflation data, with Nasdaq and S&P 500 futures falling 1.5% and 1.0%, respectively. Novo Nordisk's stock plummets 19% after disappointing results for its obesity drug CagriSema, while FedEx shares surge 8% on plans to spin off its Freight unit. Nike's stock dips 6% despite better-than-expected earnings, as it warns of a revenue drop in Q3.
UBS has lowered its price target for Micron (MU) to $125 from $135 while maintaining a Buy rating. The firm noted that Micron's guidance fell short of expectations due to ongoing challenges in consumer markets, but highlighted positive prospects in the DRAM sector, viewing the current pullback as a buying opportunity.
UBS has lowered its price target for Micron (MU) to $125 from $135 while maintaining a Buy rating. The adjustment follows Micron's guidance, which fell short of expectations due to ongoing challenges in consumer markets. Despite this, UBS highlights positive aspects in the DRAM sector and views the current pullback as a buying opportunity, anticipating significant revenue growth ahead.
The stock market's value is increasingly concentrated in a few megacap tech companies, raising risks for passive index investors due to reduced diversification. The Herfindahl-Hirschman Index (HHI) has surged to 207, indicating significant concentration, which could lead to sharp declines in wealth if major players like Apple or Microsoft experience price drops.
Real estate investments carry risks such as value declines and borrower defaults, while alternative strategies are speculative and suited for sophisticated investors. Structured products involve derivatives with various risks, including market volatility and issuer credit risk. Hedge funds and private equity also present high risks and illiquidity, lacking the regulatory oversight of mutual funds. Investors should carefully review offering documents and understand the inherent risks before proceeding.
UBS has resumed coverage on Pagaya Technologies with a Neutral rating and a price target of $11.00, citing potential revenue growth but expressing caution over credit impairments. The company reported a 23.4% revenue increase in the past year, reaching $970.9 million, and aims for GAAP profitability by 2025. Despite a strong market position and strategic partnerships, UBS seeks clarity on credit losses before making further recommendations.
UBS has resumed coverage of Pagaya Technologies (NASDAQ: PGY) with a Neutral rating and a price target of $11.00, citing potential revenue growth amid a volatile stock performance. The company reported a 23.4% revenue increase over the past year, reaching $970.9 million, and aims for GAAP profitability by 2025. However, UBS remains cautious due to uncertainties regarding credit impairments, particularly from riskier asset-backed securities, and is seeking clarity on these issues before making further recommendations.

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