UBS: Increase Fair Value by 22% to CHF 27.50 per share To Include Credit Suisse

The 22% increase in our fair value estimate for UBS to CHF 27.50 is primarily due to the takeover of Credit Suisse, implying that we place a value of around CHF 19 billion on the acquired Credit Suisse operations. To contextualize our valuation, in February 2023, before the final collapse of Credit Suisse, the market still valued it at CHF 13 billion. As recently as March 2021, Credit Suisse had a market value of CHF 32 billion. We acknowledge that it will be hard, if not impossible, for UBS to reverse Credit Suisse's recent revenue losses. UBS is, however, much better placed than Credit Suisse to drastically reduce the loss-making, volatile, and capital-hungry investment banking operations and restore the profitability of Credit Suisse's wealth management operations.