RBC Updates Price Target, Estimates for UBS Group as Credit Suisse Integration Wraps

02:25 AM EST, 11/06/2026 (MT Newswires) -- RBC Capital Markets believes UBS Group (UBSG.SW) is poised to shift toward organic growth and shareholder returns as the integration of Credit Suisse nears completion. "As the CS integration is completed, we expect the next phase (to be presented early 2027) to focus on capitalizing on the current set up with TBTF rules moving out of the center of debate. We expect further return expansion based on GWM growth, operating leverage and capital management supporting a re-rating of shares," according to a Friday note. The research firm added that the clarified too-big-to-fail rules allow UBS to meet regulatory capital targets gradually while keeping its common equity tier 1 ratio near 14% through 2029. As such, RBC raised its full-year 2027 to 2028 share buyback forecasts, boosting annual EPS estimates by 4% to 6% through 2029 and lifting total estimated yield near 10%. Analysts also expect UBS to pivot toward scaling its franchise through investments in digital and artificial intelligence. Although these initiatives are projected to elevate near-term costs, the research firm forecasts a payoff by 2029. Against this backdrop, RBC increased the outperform-rated stock's price target to 50 francs from 44 francs and lifted adjusted EPS estimates for 2026 through 2028.