Underlying profit was in line with forecasts and the highlight for UBS was the increased price realisation of 3% in response to cost inflation incurred over the past two years.
However, underlying margins still fell in the Americas and EMEA. UBS reduces forecasts for EBIT by -4-5% over the next three years to reflect a higher cost to serve in developed markets.
Neutral rating maintained. Target rises to $12.60 from $12.00.
Sector: Commercial & Professional Services.
Target price is $12.60.Current Price is $13.14. Difference: ($0.54) – (brackets indicate current price is over target). If BXB meets the UBS target it will return approximately -4% (excluding dividends, fees and charges – negative figures indicate an expected loss).
