DB - Deutsche Bank: Why I Expect Double-Digit Equity Yields Through 2025

2024-02-01 10:01:51 ET

Summary

• Deutsche Bank Aktiengesellschaft reported solid Q4 2023 results, slightly missing revenue estimates but beating earnings expectations.
• Management expects to deliver €1.6 billion in capital distributions for H1 2024, with a 13% implied yield for shareholders.
• The bank increases its revenue CAGR target through 2025 to 5.5-6.5% and predicts strong commercial traction in fee income.
• Overall, I argue that Deutsche Bank's Q4 reporting is well in line with my previously established "deep value thesis "on the bank.
• As a valuation anchor, I continue to believe that a $35 target price should be reasonable compared to fundamentals.

Deutsche Bank Aktiengesellschaft (DB) opened books for Q4 2023 and overall reported solid results, slightly missing estimates on revenue, but beating on earnings. The most important takeaway for investors, however, was seen in the enormously optimistic shift towards accelerated shareholder payouts....

For further details see: