Latest news with #UBS
CNBC
10 hours ago
- Business
- CNBC
Yields on these income-producing assets can top 6%. Here are UBS' top picks in preferred securities
Long-term investors can find solid income in preferred securities, according to UBS. The assets, which have hybrid features of both stocks and bonds, have seen a muted performance so far this year, said Frank Sileo, senior fixed income strategist. Preferreds trade on exchanges like stocks, but also have par values and pay a stream of income. Similar to bonds, when the price of the preferred goes down, its yield moves higher. While spreads are tight, lack of competitive yield alternatives, banking sector fundamentals and supply-demand dynamics should remain supportive of the securities, Sileo said in a note Wednesday. Banks account for an estimated two thirds to three quarters of total preferred issuance , according to S & P Global. "For long-term investors, preferreds can provide high-quality, diverse, and durable portfolio income," Sileo wrote. Preferreds come in par values of $25 and $1,000, with the former sold to retail investors and the latter aimed at institutions. Many have long maturity dates or are perpetual, but they typically have "call dates," or points in time when they can be redeemed. UBS recommends investing in both preferred par values. The $25 par preferreds have underperformed so far this year, down 0.6% year to date, versus a 3.5% gain for $1,000 par preferreds, as of June 24, Sileo said. The performance of the lower-priced securities are somewhat more influenced by stock market trends, he noted. "This illustrates the importance of 'intra-sector diversification,'" Sileo said. "Adding USD 1,000 par preferreds may improve overall risk-adjusted performance by reducing return correlations with other sectors, including common stocks." Investors can also save on taxes compared to bonds since preferreds typically are taxed at capital gains rates, which are 0%, 15% or 20%, depending on your income. Here are some of Sileo's top picks in preferred securities in different strategies: conservative, moderate and aggressive. He uses yield-to-worst as a measure of income, which is the lowest estimated annualized yield among potential redemption date scenarios. Investors looking for broad market exposure can invest in exchange-traded funds. For example, the iShares Preferred and Income Securities ETF (PFF) has a 30-day SEC yield of 6.57% and 0.46% expense ratio. The Global X U.S. Preferred ETF (PFFD) has a 6.52% 30-day SEC yield and 0.23% expense ratio. However, the majority of the ETFs are indexed funds with limited or no exposure to $1,000 par preferreds, Sileo noted. "Given the diversity of investment choices within the preferred securities sector and the wide range of preferred ETFs, investors may consider a strategy that uses both single-security recommendations and ETF selections for a more tailored, customized investment solution," he said.
Yahoo
10 hours ago
- Business
- Yahoo
Mettler-Toledo price target raised to $1,260 from $1,200 at BofA
BofA raised the firm's price target on Mettler-Toledo (MTD) to $1,260 from $1,200 and keeps a Neutral rating on the shares. The firm is updating its price targets for stocks under its coverage in the Life Sciences & Diagnostic Tools, LSTs, sector, the analyst tells investors. The firm notes LSTs remain under pressure as uncertainty persists with the macro environment and U.S. government policies. Recent weeks, however, have seen some signs of improvement as tariff concerns have cools slightly, the firm adds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on MTD: Disclaimer & DisclosureReport an Issue Mettler-Toledo initiated with an Overweight at Barclays Citi adds 'upside 90-day short-term view' on Mettler-Toledo MongoDB and Asana downgraded: Wall Street's top analyst calls UBS upgrades Mettler-Toledo to Buy into growth reacceleration UBS upgrades Mettler-Toledo to Buy ahead of growth reacceleration Fehler beim Abrufen der Daten Melden Sie sich an, um Ihr Portfolio aufzurufen. Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten Fehler beim Abrufen der Daten
Yahoo
10 hours ago
- Business
- Yahoo
Revvity price target lowered to $110 from $116 at BofA
BofA lowered the firm's price target on Revvity (RVTY) to $110 from $116 and keeps a Buy rating on the shares. The firm is updating its price targets for stocks under its coverage in the Life Sciences & Diagnostic Tools, LSTs, sector, the analyst tells investors. The firm notes LSTs remain under pressure as uncertainty persists with the macro environment and U.S. government policies. Recent weeks, however, have seen some signs of improvement as tariff concerns have cools slightly, the firm adds. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on RVTY: Disclaimer & DisclosureReport an Issue Revvity announces launch of three Mimix reference standards for IVD use Citi adds 'upside 90-day short-term view' on Revvity Revvity upgraded to Buy from Neutral at UBS Revvity Reports Strong Q1 2025 Financial Results Revvity's Resilience and Strategic Positioning Earns Buy Rating Amidst Macroeconomic Challenges Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
11 hours ago
- Automotive
- Globe and Mail
Tesla Stock (TSLA) Gets a Price Target Boost from UBS as Robotaxis Hit the Streets
Analysts at bank UBS Group (UBS) have raised their price target on Tesla (TSLA) stock as the company launches its highly anticipated robotaxi in Austin, Texas. Confident Investing Starts Here: UBS took its price target on TSLA stock to $215 a share from $190 previously, saying that the company's robotaxi is worth $99 per share in value, which is nearly half of the price target. However, despite the price target bump, UBS maintained a Sell rating on TSLA stock, saying the robotaxi is already priced into the shares. At the same time, Wedbush technology analyst Daniel Ives rode in a robotaxi and said that the experience exceeded his expectations. Ives' also issued a note about TSLA stock on June 23, the day of the official robotaxi launch in Texas. He maintained a Buy rating on the shares and Wall Street-high price target of $500 a share. Challenges Ahead The robotaxi launch and bullish analyst comments have TSLA stock up nearly 10% on June 23. However, while there is plenty of excitement about the robotaxis, Tesla continues to face numerous challenges moving forward, especially when it comes to sales of its electric vehicles. Recent data showed that Tesla's electric vehicle sales fell 49% year-over-year in Europe as consumers turn away from the brand and the politics of CEO Elon Musk. Sales are also down in other jurisdictions, notably China. The Tesla brand has taken a hit from Musk's involvement with the administration of U.S. President Donald Trump. TSLA stock is down 13% on the year. Is TSLA Stock a Buy? The stock of Tesla has a consensus Hold rating among 35 Wall Street analysts. That rating is based on 14 Buy, 12 Hold, and nine Sell recommendations issued in the last three months. The average TSLA price target of $286.14 implies 11.18% downside from current levels.
Yahoo
11 hours ago
- Business
- Yahoo
Breaking: S&P 500 and Nasdaq Futures Hit New Highs Ahead of PCE
June 27 - Equity futures climbed as Wall Street awaited Friday's core Personal Consumption Expenditures report. S&P 500 futures inched up about 0.4%, matching gains for Nasdaq 100 futures and Dow futures. U.S. 10-year Treasury yields ticked higher by three basis points to 4.27%, while two-year yields rose two basis points to 3.75%. Earlier, SPX futures briefly reached 6,202.00 points, eclipsing the prior intraday record of 6,147.43 set on Feb. 19. Markets seem to have found a rare pause amid Middle East calm, said Jim Reid of Deutsche Bank, noting that traders appear unfazed by the looming July 9 tariff deadline. Analysts expect May's core PCE index to show a 0.1% month-on-month rise, lifting the year-on-year rate to around 2.6%, up from 2.5% in April. Headline PCE is forecast at a 2.3% annual gain. Paul Donovan at UBS observed that May income and spending data may soften after consumers front-loaded purchases ahead of trade taxes, with tariff impacts likely to appear in coming months. With the PCE reading and June consumer sentiment, seen steady at about 60.5, due before the opening bell, markets may hold their breath for fresh cues. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
