Analysts are bearish on Deutsche Bank
Analysts haven’t been this bearish on Deutsche Bank (DB) since the 2008 financial crisis. Shares of the company are now trading at one-third of their book value—a higher discount than it saw during the crisis (EUFN) (XLF).
Chief Executive Officer John Cryan has been under pressure to overhaul the bank after litigations and lawsuits have pushed the bank lower. Its stock has fallen 45% YTD (year-to-date) and trades at distressed valuations.
Meanwhile, Cryan’s efforts to turn the bank around have not been working out well. In 2015, the company announced its first full-year loss since 2008, and the bank still has a slew of litigation costs to settle.
In September, the stock fell to all-time lows after the US Department of Justice asked for $14 billion as a settlement in a residential mortgage-backed securities investigation. Cryan has been shrinking risky businesses while cutting down on staff related costs and dividend payments to boost capital levels and restore the bank’s profitability.
In a Bloomberg survey of 37 analysts, 4 (11%) analysts have assigned a “buy” rating to Deutsche Bank while 19 (51%) have rated it as “hold.” The stock has received 14 (38%) “sell” ratings so far.
Deutsche Bank (DB) has a consensus target price of ~12.5 euros (about $13.7), resulting in a one-year upside potential of 1%. Shares of the bank have fallen 45% YTD.
Changing oil prices have shifted the segmental dynamics within Suncor Energy (SU).
JCPenney (JCP) is slated to announce its results for the first quarter of fiscal 2019, which ended on May 4, on May 21.
The key point of contention in the US-China trade dispute is the large trade deficit the United States runs against China.
On May 16, the Labor Department reported jobless claims for last week. Initial jobless claims fell by 16,000 to 212,000 for the week ended May 11.
Jeffrey Gundlach recommended investors take advantage of the volatility in interest rates at the recent Sohn Conference.
Tesla (TSLA) has fallen 4.2% as of 11:55 AM EDT on May 17. While US equity markets opened in the red today, they've recouped their losses.
According to Reuters, on May 16, Vale (VALE) told prosecutors that a dam was at risk of rupturing at its Gongo Soco mine.