Investing.com — UBS has updated its top picks, making notable changes across several sectors, including financials, energy and utilities.

In a move reflecting expectations of a “soft landing” for the U.S. economy, UBS added Bank of America and Truist Financial (NYSE:) Corporation to its list of top picks.

In the financial sector, UBS removed Intercontinental Exchange (NYSE:) and Visa (NYSE:) from its list, favoring banks with greater leverage to reduce interest rates.

UBS believes that BAC “is the multinational bank best positioned to benefit from lower short-term interest rates and a soft economic landing.”

The bank’s diversified business model – spanning consumer credit cards, commercial lending, capital markets and wealth management – ​​positions it well for profitability over the next year.

Truist was also added, with UBS citing the bank’s exposure to “lower deposit funding costs in a falling federal funds rate environment.”

UBS expects Truist to benefit from increased efficiencies in capital allocation and cost management, supporting profitability growth over the next 12 months.

The company has also adjusted its choices in other sectors. UBS added Suncor Energy (NYSE:) to the energy sector, highlighting its “attractive valuation and accelerated pace of turnaround” under new management.

In utilities, UBS added Entergy Corp. (NYSE:). And Sempra Energy (NYSE:), highlighting ETR’s declining regulatory risks and infrastructure opportunities as well as SRE’s growth potential through investments in LNG and its utility operations in Texas.

In the area of ​​MLPs and energy infrastructure, UBS introduced Morgan Kinder (NYSE:), which it says offers “an attractive valuation” with potential growth tied to increased demand for AI and data center power needs.

UBS maintained financials, information technology and utilities as its “preferred” sectors, while ranking materials and real estate as “least preferred.”