FINWIRES · TerminalLIVE
FINWIRES

Research Alert: Ubs Q1 Beats On Integration And Ib Strength; Capital Requirements Cloud Outlook

By

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

UBS delivered exceptional Q1 2026 results with net profit of USD3.0B (+80% Y/Y) and underlying PBT of USD4.0B (+54% Y/Y), beating consensus estimates. The strong performance reflected broad-based momentum, with underlying revenues advancing 18% and the fourth consecutive quarter of positive operating leverage. UBS achieved a pivotal milestone in the Credit Suisse integration, completing Swiss client account transfers and delivering USD0.8B in additional gross cost savings. Management expressed confidence in substantially completing the integration by year-end 2026 and achieving exit rate targets of an underlying return on CET1 capital of approximately 15% and a cost-to-income ratio below 70%. However, two significant overhangs temper the outlook: proposed Swiss capital framework changes requiring an additional USD22B in CET1 capital represent a material headwind, while elevated geopolitical risks could shift client sentiment given management's guidance for flat net interest income sequentially in Q2 2026.

Related Articles

Research

Research Alert: CFRA Keeps Buy Opinion On Adss Of Barclays Plc

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We adjust our 12-month target price to USD27 from USD30. This is derived by applying a 9.1x P/E multiple to our 2026 EPS forecast. The premium over its five-year historical average forward P/E of 6.4x is justified by its improved profitability profile, earnings resilience and capital return visibility. We maintain our 2026 EPS forecast of GBP0.55 and our 2027 EPS forecast at GBP0.62. Our Buy rating is reinforced by a strong Q1 2026 performance, which serves as proof of the bank's ambitious strategic plan. Barclays showed striking resilience by absorbing about GBP333 million in notable one-off charges, including a GBP228 million fraud-related impairment and a GBP105 million motor finance provision, while still delivering a robust 13.5% RoTE. Management's commitment to shareholder returns was reaffirmed with the announcement of a new GBP500M share buyback, adding significant credibility to the multi-year framework of distributing over GBP15B to shareholders between 2026 and 2028.

$BCS
Research

Research Alert: CFRA Reiterates Sell Opinion On Shares Of Starbucks Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our price target by $8 to $82, 30x our FY 27 (Sep.) EPS estimate and in line with its 10-year average forward multiple. We raise our FY 26 estimate to $2.26 from $2.21 and FY 27's to $2.74 from $2.64. Following FQ2 results that showed strong global comp growth acceleration to 6.2% (+710 bps), we reiterate our Sell opinion. Shares trade at 30x forward earnings, in line with their long-term average, suggesting the market expects this momentum through FY 27. Our model assumes SBUX meets its 5% global comp growth goal in FY 26, with margin expansion due to waning store investment costs, lower interest expenses, and improved international segment margins from the Boyu Capital China joint venture. We believe it will be difficult to sustain operating margin improvement on comp growth alone, with new store growth of just 0.8% in FQ3 potentially not inflecting higher until FY 28. At current valuation levels reflecting optimistic assumptions, we see limited upside and maintain our Sell rating.

$SBUX
Research

Research Alert: Firstenergy Q1 Delivers 7.5% Eps Growth; Reaffirms Top-end Growth Targets

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:FirstEnergy delivered strong Q1 results with core EPS of $0.72, in line with consensus, and 7.5% EPS growth driven by formula rate investment returns. Revenue increased 10.5% to $4.2B with meaningful ROE improvement to 9.8%, supported by $1.4B in capital deployments (up 33%). Earnings growth was broad-based across segments, with Distribution leading at $0.03 per share contribution from higher rates and disciplined expense management, while transmission segments benefited from robust rate base expansion of 11-19%. Management reaffirmed 2026 core EPS guidance of $2.62-$2.82 and long-term growth targets near the top of the 6-8% CAGR range through 2030. The $36B Energize365 capital plan for 2026-2030 represents a 30% increase over the previous program and should drive ~10% compounded annual rate base growth. Customer demand showed modest improvement with weather-adjusted sales up 0.5%, while 90% of investment increases were in formula rate programs providing regulatory certainty.

$FE