UBS upgraded UK equities to attractive after a recent pullback, citing rising energy prices that could contribute about 18% of MSCI UK earnings this year. The bank raised its UK corporate earnings-growth forecast to 16% from 11% and said risks to the estimate are skewed to the upside. UBS set FTSE 100 targets of 11,200 by December 2026 and 11,500 by June 2027, compared with 10,650 on September 15, 2026, while outlining upside and downside scenarios of 12,300 and 7,700, respectively, for June 2027. Despite the absolute upgrade, UBS ranks UK equities least preferred relative to other regions and expects earnings growth to slow to about 9% in 2027 as commodity support fades. Barclays and BlackRock have separately highlighted valuation discounts, diversification benefits and opportunities in UK industrials, banks and mining companies.