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On Thursday, Deutsche Bank (ETR:DBKGn)’s analysts, led by Benjamin Goy, increased their price target on ABN Amro (ABN:NA) (OTC:ABNRY) shares to EUR20.00, up from EUR17.50. The rating on the stock remains at Hold. The decision follows ABN Amro’s first-quarter financial results for 2025, which revealed satisfactory profit and loss trends and a robust capital position.
ABN Amro’s recent quarterly performance indicated a resolution to its longstanding risk weight issues, which had previously been a concern for investors and analysts alike. The bank’s risk-weighted assets (RWAs) showed a positive surprise in the first quarter, and the company’s commentary hinted at further potential gains. Consequently, Deutsche Bank has revised its forecasts for the bank’s share buybacks upward.
Moreover, the analysts anticipate that net interest income for ABN Amro will start to stabilize. This expectation comes after a recent cut in the savings rate and a strong pattern of loan growth. The bank’s communication and delivery have also seen considerable improvements over the past few quarters, which has been acknowledged by Deutsche Bank’s team.
Despite these positive developments, ABN Amro’s valuation remains in line with the sector, trading at 8.1 times its estimated earnings per share for 2026 and offering a 9.3% total yield for the same year. This alignment with the sector’s performance is one of the reasons why the Hold rating was maintained by Deutsche Bank.
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