DB - Deutsche Bank ADSs downgraded to Hold at CFRA as targets more difficult to reach

2023-04-27 14:30:53 ET

• CFRA analyst Firdaus Ibrahim on Thursday cut his rating on Deutsche Bank ( NYSE: DB ) American Depositary shares to Hold from Buy.
• "While Deutsche Bank ( DB ) has announced additional measures to accelerate the execution of its strategy, we think it has become more difficult for the bank to reach its 2025 financial targets amid a more challenging macroeconomic backdrop," Ibrahim wrote in a note.
• He points out that the company's net revenue rose 5% Y/Y as net interest income at the Corporate Bank and Private Bank more than offset lower revenue at its Investment Bank, which is facing challenging market conditions, and Asset Management, which is seeing lower management and performance fees.
• Q1's adjusted costs were stable, reflecting the impact of its cost and efficiency measures, which offset inflation and investments for business growth, Ibrahim said.
• Even with the CFRA downgrade, Deutsche Bank ( DB ) gained 2.7% in U.S. midafternoon trading.
• SA contributor Harrison Schwartz says Deutsche Bank ( DB ) is not Credit Suisse, but It's Certainly Not 'Safe'
• Meanwhile, IP Banking Research sees fears over DB's derivatives exposure as "way overblown."

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