UBS shares get a boost after Cevian takes 1.3% stake
Cevian Capital takes a 1.3% stake in Swiss bank UBS, worth around $1.3 bn. IGTV’s Angeline Ong looks at what’s behind the activist investor group’s move and what this means for UBS’ stock.
C(AI Video Summary)
UBS shares on the rise following Cevian investment
Shares of Swiss bank UBS experienced a significant boost after news broke that activist investor group Cevian Capital had acquired a 1.3% stake, valued at around $1.3 billion. Cevian now ranks among the top 10 investors in UBS, indicating their confidence in the bank's potential. Cevian's co-founder, Lars Förberg, believes that UBS could double its value in the next three to five years. This optimism stems from UBS's recent acquisition of Credit Suisse, which led to a nearly 50% surge in UBS's share price. Förberg argues that UBS is currently undervalued, as the market fails to recognise its status as a leading global wealth management institution.
Positive market reaction
Cevian's entrance as a major investor could impact UBS's direction and strategy. Activist investors typically engage with the company management and push for changes that they believe will increase shareholder value. As a top 10 investor, Sevian is likely to have a say in UBS's decision-making processes, potentially influencing the bank's future plans.
The positive market reaction to Cevian's investment demonstrates that investors are optimistic about UBS's future performance. The belief that UBS could double its valuation in the coming years indicates confidence in the bank's ability to capitalise on its position in the global wealth management sector. However, achieving this goal would necessitate UBS's continued expansion and the delivery of strong financial results in a competitive market. Investors will be closely monitoring UBS's progress to see if Cevian's optimistic predictions prove accurate.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
