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 €38.00.
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Tarik El Mejjad has given his Buy rating due to a combination of factors that point to an improving underlying performance at Deutsche Bank despite recent share price weakness. He highlights that market volatility and one-off items have obscured solid trends in core businesses, including accelerating loan growth in the Corporate and Investment Bank and a notable reduction in the normalized cost of risk.
At the same time, he sees multiple structural earnings drivers firmly in place, from exposure to German fiscal stimulus and pension reform to a strong FIC franchise and disciplined cost execution. Combined with a still-low valuation relative to earnings growth and return on equity targets, and a steadily rising capital return profile, he views Deutsche Bank as one of the most attractive turnaround opportunities among European banks, justifying his Buy recommendation and €38 price objective.
According to TipRanks, El Mejjad is a 2-star analyst with an average return of 2.1% and a 56.25% success rate.
In another report released on May 8, Oddo BHF also upgraded the stock to a Buy with a €34.00 price target.