NEW YORK (dpa-AFX) — Jefferies has kept its rating on UBS at Buy with a 60-franc price target, following a recommendation by Switzerland's Council of States committee on banking regulation, the firm's analyst Joseph Dickerson wrote Monday.
The committee advocated a significantly more moderate approach to capital rules for foreign subsidiaries than the Swiss Federal Council had proposed, Dickerson noted. As a result, the capital-requirement question for UBS's overseas operations continues to lose prominence, he wrote.
The legislative process is not yet complete, but Dickerson said he expects investor focus to increasingly shift away from capital uncertainty and toward improvements in capital return.
