UBS Launches Up to $8 Billion Debt Tender Offer and Raises Targets on IHG, Dominos and Johnson and Johnson

UBS Group launched tender offers to repurchase up to $8 billion of its outstanding debt securities on September 2, marking a significant liability management exercise for the Swiss bank. The move reflects UBS's active effort to manage its balance sheet following its absorption of Credit Suisse, with the offers spanning multiple series of notes across both UBS Group AG and its subsidiary UBS AG.

On the research front, UBS upgraded InterContinental Hotels Group to Buy from Neutral, lifting its price target to $188 from $157.65. The bank cited IHG's shares trading at a discount to certain peers despite its strong long-term track record in global lodging, and IHG stock rose roughly 2% to around $159.10 on the news.

UBS also initiated coverage of Swedish medical technology firm Getinge at Neutral, concluding that quality concerns already known to the market are largely priced into the stock. Separately, UBS raised its price target on Domino's Pizza, pointing to continued market share gains, and lifted its Johnson and Johnson target to $320, citing an improved outlook.

On currencies and macro, UBS forecast that the EUR/USD rate, which had slipped to 1.1574 after an August rally stalled above 1.17, would recover toward the 1.18 to 1.20 range. The bank attributed limited foreign exchange volatility to modest policy divergence between the Federal Reserve and the European Central Bank. UBS also weighed in on whether the ECB's recent hawkish shift is beginning to affect the broader economy, a question markets are watching closely heading into the autumn policy calendar.