DB - Deutsche Bank upgraded to Neutral at BofA as multiple agrees with profit gap

Bank of America Securities analyst Rohith Chandra-Rajan has upgraded Deutsche Bank (NYSE:DB) to Neutral from Underperform as the bank's tangible book multiple, at a 40% discount to the European bank sector, is in line with its profitability gap. The analyst increased price target to €11.50 ($12.69) from €10.00. Chandra-Rajan increased BofA's earnings estimates for Deutsche Bank (DB) 9-15% as he sees better Corporate Bank and Private Bank revenue offsetting higher costs and Russia-related writedowns. The Investment Bank is still a key determinant of profitability, even as earnings become more balanced, he said. "This means that Deutsche Bank (DB) is likely to fall well short of its target 10% RoTE by 2025," the analyst wrote in a note to clients. His Neutral rating aligns with Quant rating of Hold. Previously (March 11), Deutsche Bank says it's winding down business in Russia SA contributor Siyu LI is more optimistic on Deutsche Bank's turnaround story

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Deutsche Bank upgraded to Neutral at BofA as multiple agrees with profit gap