Canaccord Genuity analyst Arun Melmane in a note to clients on Tuesday struck a brighter tone, writing that "The capital story for UBS is coming along strongly," as the company's fully-implemented Basel III Tier 1 common equity ratio was 11.9% as of Sept. 30. Melmane rates UBS a "buy." "The ROE target being potentially postponed by 1 year, we view as less of a worry for the investment case. We see the capital level within UBS as still excessive for a restructured bank with a focus on wealth management with constrained
investment bank RWAs. Management has shown good progress on de-leveraging and RWA reduction and we expect them to be able to offset the FINMA charge via management actions," Melmane wrote.