10 Best European Bank Stocks to Buy According to Analysts

8. UBS Group AG (NYSE:UBS)

Number of Hedge Fund Holders: 25

Stock Upside Potential as of January 24: 7%

UBS Group AG (NYSE:UBS) provides financial advice and solutions to private, institutional, and corporate clients worldwide. It also offers investment advice, estate and wealth planning, investing, corporate and banking. The Swiss financial services juggernaut increased by about 18% in 2024 due to strategic business moves, cost management efforts, and a favorable banking environment.

Its edge as one of the best European bank stocks to buy stems from its operational strength and strategic focus. UBS Group AG (NYSE:UBS) achieved a 28.1% revenue growth last year, affirming its focus on faster capital growth. The increase is attributed to the strength of the company’s investment banking capabilities and asset management services.

Profit before tax reached highs of $7.1 billion in the turgid quarter at the back of a 9% increase in revenue as invested assets rose by 15% to $6.2 trillion. UBS Group AG (NYSE:UBS) can boost earnings growth through accelerated cost savings. The company may enhance its overall financial performance and profit margins by putting more emphasis on operational efficiency. The growth should come as UBS Group invests in technological tools to improve its service delivery and customer experience. It’s been investing in Microsoft’s Copilot and its AI assistant, Red.

As of January 24th, UBS Group AG (NYSE:UBS) had a 5.12% upside potential. While the average upside is modest, the highest target indicates significant growth. The stock is rated as a Strong Buy by multiple analysts. Over the past year, 9 Wall Street analysts have rated UBS, resulting in a consensus “Buy” rating: 3 holds and 6 buys.