In a report released today, Tarik El Mejjad from Bank of America Securities reiterated a Buy rating on Deutsche Bank AG, with a price target of €37.00.
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Tarik El Mejjad has given his Buy rating due to a combination of factors that highlight Deutsche Bank AG’s strategic shift and growth potential. The bank has unveiled a comprehensive business plan for 2028, signaling the conclusion of its extensive restructuring phase and a pivot towards revenue growth. This plan includes ambitious targets such as a return on tangible equity exceeding 13% by 2028, driven by increased deposit volumes, a stronger investment banking market presence, and favorable asset management conditions.
Additionally, Deutsche Bank’s capital return strategy is a significant factor in the Buy rating. The bank aims to maintain a robust CET1 ratio while increasing its distribution ambitions, projecting over €19 billion in returns by 2028, which is approximately 32% of its market cap. Despite some market skepticism regarding the feasibility of certain revenue targets, El Mejjad believes the bank’s strong German franchise supports these goals, and the plan’s solid cost discipline further reinforces the positive outlook.
In another report released yesterday, J.P. Morgan also maintained a Buy rating on the stock with a €38.40 price target.