Ahead of the Bell: Goldman Sachs cuts UBS target

Analyst Christoffer Malmer reduce his price target for UBS to 34 francs ($32.53) from 35 francs ($33.49).

Malmer maintained a "Neutral" rating on UBS, saying the price target represents an upside for the stock that is in line with its banking competitors.

UBS, which has been hit hard by losses stemming from investments in the U.S. mortgage market, said it is raising $15.5 billion through the offering of stock rights to existing shareholders. The price of the stock offer is a 31 percent discount on the stock's Wednesday closing price in Switzerland.

Shareholders will receive one subscription right per share held, with 20 of the rights entitling the holder to buy seven new shares. New shares will be priced at 21 francs ($20.09).

The pricing of new shares comes a day after UBS said it would sell $15 billion in subprime and alt-A mortgage assets to BlackRock Inc. as it tries to reduce its exposure to the troubled mortgage market. The securities have a nominal value of $22 billion.

Subprime mortgages are loans given to customers with poor credit history, while alt-A mortgages are given to customers with minor credit problems or that do not have the documentation to receive a traditional, prime mortgage.

Shares of UBS that trade in the U.S. rose 37 cents to $29.71 in premarket trading.