BofA Securities reinstates Deutsche Bank stock with buy rating

Published 10/06/2025, 16:12
BofA Securities reinstates Deutsche Bank stock with buy rating

On Tuesday, BofA Securities reinstated coverage on Deutsche Bank (ETR:DBKGn) stock with a Buy rating, setting a price target of €29.00. The decision highlights Deutsche Bank’s position as a "Global Hausbank" with a strategic advantage in Germany. The bank’s stock has shown remarkable strength, delivering a 74% return over the past year and trading at a modest P/E ratio of 14.5. According to InvestingPro analysis, Deutsche Bank is currently undervalued, with additional upside potential.

The analyst at BofA Securities anticipates that Germany’s fiscal changes will significantly benefit Deutsche Bank starting in the second half of 2026, with an expected GDP growth of 1.5-1.8% in the third and fourth quarters of that year. The analyst also projects that 2025 will be a pivotal year for Deutsche Bank, as it moves past its low return on tangible equity (ROTE) and focuses on an improving outlook for 2028. With a solid financial health score rated as "GOOD" by InvestingPro, which offers 12 additional key insights about the company, Deutsche Bank appears well-positioned for future growth.

BofA Securities expects Deutsche Bank to achieve approximately 12% ROTE in 2028, driven by increased revenues of over 4%, cost control measures, and a higher capital return of 10%. The bank is seen as offering significant earnings per share upgrades while trading at low multiples.

The firm also identified several upcoming catalysts for Deutsche Bank, including the EU Council meeting in June, the German draft budgets for 2025 and 2026 expected in June and July, and a Capital Markets Day scheduled for November.

In other recent news, Deutsche Bank has announced plans for an additional share buyback and reaffirmed its financial targets for 2025, including a return on tangible equity exceeding 10% and a cost/income ratio below 65%. The bank has proposed a dividend of €0.68 per share, marking a 50% increase from the previous year, subject to shareholder approval at the upcoming Annual General Meeting. RBC Capital Markets adjusted its price target for Deutsche Bank, reducing it from EUR26.00 to EUR23.00, while maintaining an Outperform rating, citing a more conservative stance on future profitability. The analysts noted increased projections for Fixed Income, Currencies, and Commodities trading revenue but anticipated lower investment banking fees and potential upticks in loan losses.

Deutsche Bank’s first-quarter results showcased a 13.8% common equity tier 1 (CET1) ratio, consistently above its target of around 13.0%, which the bank aims to maintain. RBC Capital also expressed skepticism about the likelihood of a second share buyback by Deutsche Bank in 2025. Meanwhile, Euronext (EPA:ENX) reported a strong first quarter for 2025, with a 13% year-over-year organic revenue growth, surpassing consensus expectations and improving its underlying EBITDA margin to 64%. Deutsche Bank analyst Benjamin Goy raised Euronext’s price target to EUR164, maintaining a Buy rating, citing attractive trading multiples and strategic positioning. Despite facing challenges from a negative net financing result, Euronext’s performance and valuation metrics indicate a positive outlook.

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