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Analysts’ Ratings and Average Target Price for Deutsche Bank

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Performance review

Deutsche Bank (DB) has been under fire over the past year. The shares of the company have fallen 32% in 2016 and 48% in the last year. Deutsche Bank has been the focus of anxiety in the European banking system (EUFN). In 2015, the bank announced its first loss since the 2008 recession, and co-CEO John Cryan is trying hard to turn the bank around. Given the dismal performance, we may see more analysts turn bearish on the stock. Cryan has been under pressure to overhaul the bank after litigation expenses and the Market rout in Asia have pushed the bank’s valuation much lower than those of its rivals.

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Analysts’ target price and ratings

With an average target price of 20.69 euros and a median target estimate of 19.84 euros, Deutsche Bank’s stock is still trading at a discount of 16% to analysts’ expectations. Among the 39 analysts following the stock, only six have assigned “buy” ratings to the stock. The stock has received ten “sell” ratings and 22 “hold” ratings.

Valuations

Deutsche Bank’s stock is trading at a price-to-book value ratio of 0.32x. Large-cap peers Royal Bank of Scotland (RBS), Credit Suisse (CS), and Barclays (BCS) are trading at a premium to Deutsche Bank.

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