Report published September 24, 2026
European Healthcare: Equity Preferences – UBS Investment Research Report
UBS · September 24, 2026
UBS rates the European Healthcare sector as Attractive, citing stabilizing forward earnings, reasonable valuations trading below the 10-year average P/E of 16.5x, and cleared US policy headwinds. Top picks include Galderma and UCB, while Bayer was newly added to the Equity Preference List.
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Finvaulta summarizes UBS's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.European Healthcare is rated Attractive due to reasonable valuations following a pullback, fading USD headwinds, and resolved US tariff and MFN drug pricing overhangs.
- 2.Galderma and UCB are named top picks within the European healthcare coverage, driven by strong growth franchises in aesthetics/dermatology (Nemluvio) and immunology (Bimzelx).
- 3.Portfolio changes include adding Bayer at a 3.5% initial weight, funding it via trim reductions in AstraZeneca (-1pp), Novartis (-1pp), EssilorLuxottica (-0.5pp), Sanofi (-0.5pp), and UCB (-0.5pp).
Table of Contents
- Positioning and key trends
- Health care positioning
- Health care sector fundamentals
- Strong 2Q26 earnings season
- Obesity opportunity still in focus
- Health care top picks
- Sustainability considerations
- Equity selection
Report data
Most Preferred
| Metric | Estimate | Context |
|---|---|---|
| MSCI European Healthcare 10-year average forward P/E | 16.5 x | The MSCI European Healthcare index is currently trading below its 10-year historical average. |
| European Healthcare sector earnings growth | % | Expected mid-single-digit sector earnings growth in FY26. |
| Galderma EPS CAGR | 30.0% | Forecasted compound annual earnings growth rate versus 13% for European mid-cap peers. |
| Novo Nordisk 12-month forward P/E | 14.0 x | Trading well below its 10-year historical average P/E of 24x. |
Reports in this series
Equity Preference List is shown in chronological order through this edition, published on September 24, 2026.
Part of the Equity Preference List series — view all 13 editions
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