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What Do Analysts Recommend for Deutsche Bank?

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Analysts’ price target and ratings

Year-to-date, Deutsche Bank shares have lost 17.7% of their value.

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With an average consensus price target of 22.81 euros and a median target estimate of 22.86 euros, it’s still at a 9.5% discount to analysts’ expectations. Among the 37 analysts following the stock, only eight assigned “buy” ratings to the stock. Deutsche Bank shares received eight “sell” ratings. Currently, the shares have been assigned 21 “hold” ratings. It must be noted that the estimated EPS (earnings per share) was revised downwards in one instance by research brokerages in the past four weeks.

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The European banking system (EUFN) focused on Deutsche Bank’s health. The company announced its first fiscal loss since the 2008 recession. Deutsche Bank’s co-CEO, John Cryan, is trying to turn the bank around. The bank has a slew of litigation costs to settle. There are concerns about the bank’s ability to fulfill payments on its convertible bonds due in April 2016. Falling trading and investment banking revenue led to more questions about the bank’s profitability. Given the dismal performance, we could see more analysts turn bearish on the stock.

Valuations

Deutsche Bank shares trade at a PE (price-to-earnings) ratio of 7.4x. Large-cap peers like UBS (UBS), Credit Suisse (CS), and Barclays (BCS) are trading at PE ratios of 10.4x, 10.1x, and 6.7x, respectively.

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