Analyst Tarik El Mejjad of Bank of America Securities reiterated a Buy rating on Deutsche Bank AG, boosting the price target to €36.70.
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Tarik El Mejjad has given his Buy rating due to a combination of factors that highlight Deutsche Bank AG’s potential for growth and efficiency improvements. The bank is expected to unveil a strategic plan that emphasizes cost and capital efficiency, alongside moderate growth, particularly in its Investment Banking sector. This plan is projected to achieve a 13% return on tangible equity by 2028, supported by a compound annual growth rate in revenues of at least 5%.
Furthermore, Deutsche Bank’s efforts in cost restructuring are noteworthy, with a target to reduce the cost-to-income ratio to below 60% by 2028. The bank’s capital return strategy is also a significant factor, with expectations of approximately €18 billion in capital returns by 2028, equating to about 30% of its market capitalization. These strategic initiatives, coupled with the bank’s current valuation metrics, position Deutsche Bank as an attractive investment opportunity, justifying the Buy rating.
In another report released on November 10, UBS also maintained a Buy rating on the stock with a €35.00 price target.