European Equity Strategy: Simply Switzerland

Switzerland's equity market exhibits a 'broad positive' regime with strong sentiment but late-cycle vulnerabilities. Analysts recommend a selective, bottom-up approach focusing on specific themes and names over passive index exposure.

Key Takeaways

• 1.Switzerland's equity setup has moved into a broad positive regime driven by cyclical strength and better sentiment, but growth remains fragile and narrow.
• 2.The report advocates for selective participation rather than broad index exposure due to late-cycle warnings and weak earnings-led upgrade cycles.
• 3.Economic growth is expected to remain below trend in 2026-2027, with the SNB holding policy rates at 0% until mid-2027.

Table of Contents

• European Equity Strategy
• Regime: PMI leads, KOF restrains
• Earnings: Better relative, still narrow
• UK TAKEOVER PANEL DISCLOSURE
• Equity Strategy
• REVS
• SUMMARY
• From Swiss Cheese Recovery to Late Cycle Warning
• REVS: REGIME, EARNINGS, VALUATION, SENTIMENT
• REGIME
• Cyclical strength, late-cycle caveat
• EARNINGS
• Better relative, still narrow
• VALUATION
• Breadth beneath the premium
• SENTIMENT
• Better sponsored, not crowded
• REVS STOCK TABLE
• SWITZERLAND'S ECONOMIC OUTLOOK 2026-27
• Inflation: Modest pickup, but only due to energy
• Growth: Through the trough, but return to trend growth only next year
• Monetary Policy: On hold at 0%, despite ECB rate hikes
• Valuation Method and Risk Statement
• Required Disclosures
• Analyst Certification
• UBS Global Research: Global Equity Rating Definitions
• Company Disclosures
• UBS Global Research Disclaimer

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial