UBS (UBS) and General Atlantic Eye $1.6 Trillion Private Credit Market

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2 days ago
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  • UBS Group (UBS, Financial) is set to partner with General Atlantic in the lucrative $1.6 trillion private credit market.
  • Analysts predict an average price increase of over 21% for UBS shares, highlighting potential growth prospects.
  • UBS currently holds a "Hold" recommendation with a GF Value slightly below its current market price.

UBS Group (UBS) and General Atlantic are reportedly on the verge of solidifying a strategic partnership aimed at tapping into the burgeoning $1.6 trillion private credit sector. As part of this collaboration, UBS's investment arm will spearhead loan generation while General Atlantic secures preferential access. The alliance is poised to issue loans of up to $500 million, specifically targeting North American and European companies boasting an EBITDA of $50 million or more.

Wall Street Analysts' Forecast

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According to projections from two analysts, the average one-year price target for UBS Group AG (UBS, Financial) stands at $35.41. This includes a high estimate of $39.12 and a low estimate of $31.70. The average target price suggests a remarkable potential upside of 21.85% from the current market price of $29.06. For a more comprehensive look at these estimates, visit the UBS Group AG (UBS) Forecast page.

Brokerage Recommendations

UBS Group AG (UBS, Financial) holds a "Hold" status based on the consensus recommendation from two brokerage firms, with an average rating of 3.0. This rating scale ranges from 1 (Strong Buy) to 5 (Sell), suggesting that analysts advocate a cautious approach towards the stock.

GF Value Analysis

According to GuruFocus estimates, the projected GF Value for UBS Group AG (UBS, Financial) in the coming year is $28.60. This indicates a potential downside of 1.58% from its current price of $29.06. The GF Value represents GuruFocus' estimate of the stock's fair trading value, calculated based on historical trading multiples, past business growth, and future performance forecasts. For further insights, please visit the UBS Group AG (UBS) Summary page.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.