The leading German bank Deutsche Bank AG (DE:DBK) scored a “Perfect 10” on the TipRanks Smart Score Tool. It made it to the list six days ago, which indicates an increased likelihood that the stock will surpass market averages in terms of performance. Analysts have rated the stock as a Moderate Buy and also predict a 44.3% upside in its share price.
To assist investors with their due diligence in choosing suitable long-term investment options, TipRanks offers a range of tools. One such tool is the TipRanks Smart Score, which assigns a ranking of one to ten to stocks and provides insights on a stock’s potential to surpass the overall market returns. The assigned score is calculated based on eight different factors, such as hedge fund activities, fundamental analysis, analyst ratings, etc.
Let’s dig deeper.
Numbers Don’t Lie
In April, Deutsche Bank reported solid numbers in its first quarter’s earnings report for 2023. The bank’s revenues increased by 5% to €7.7 billion, which was its highest quarterly net revenue since 2016. The net profit was up by 8% to €1.3 billion during the quarter. The bank continues to benefit from a favorable interest rate environment, as it recorded a 71% growth in its net interest income.
Over the course of the last 15 days, the bank’s stock has received two Buy and one Sell ratings.
Two days ago, Anke Reingen from RBC Capital reiterated her Buy rating on the stock and predicted 57% growth in the share price. She is highly bullish on the stock and described the quarter’s results as “reassuring.”
On the same day, Goldman Sachs analyst Chris Hallam also recommended Buying the stock. His price target of €19 implies a huge upside of 98.5% from the current share price level.
On the contrary, analyst Rohith Chandrarajan from Bank of America Securities has a Sell rating on the stock.
Deutsche Bank Share Price Forecast
According to TipRanks’ analyst consensus, DBK stock has a Moderate Buy rating. The stock has a total of 15 recommendations, of which eight are Buy.
The average share price forecast is €13.84, which is 45% higher than the current price level.
The bank has achieved another strong quarter characterized by effective strategy execution and profitability. Moving ahead, the management is optimistic about the full-year numbers, anticipating more revenues, operational savings, and potential share buybacks.
The “Perfect 10” on the Smart Score list and the positive ratings further strengthen the investment case.