Deutsche Bank: UBS remains 'neutral' after shares drop
(CercleFinance.com) - UBS maintains its "neutral" rating and 12-month price target of 16.
3 euros on Deutsche Bank after the shares sank over 5% yesterday with the CFO warning on revenue headwinds at the CIB division in the first quarter.
The broker said that from CFO James von Moltke's presentation at an investors conference it has understood that first-quarter CIB revenues, even excluding one-off items, are still slightly to fall year-on-year.
According to UBS, the CFO statement would imply a CIB first-quarter revenue base of 3.9 billion euros, down from 4.4 billion in the first quarter of 2017, and compared to consensus of 4.4 billion euros.
Even so, UBS thinks the German bank's valuation looks "cheap".
"Valuation would be attractive under the assumption that Deutsche's CIB revenues stabilise and even recover in 2018," it said.
Given the expectation of rising rates and higher volatility, UBS believes 2018 will be a "crucial, decisive year" for Deutsche's CIB business.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
3 euros on Deutsche Bank after the shares sank over 5% yesterday with the CFO warning on revenue headwinds at the CIB division in the first quarter.
The broker said that from CFO James von Moltke's presentation at an investors conference it has understood that first-quarter CIB revenues, even excluding one-off items, are still slightly to fall year-on-year.
According to UBS, the CFO statement would imply a CIB first-quarter revenue base of 3.9 billion euros, down from 4.4 billion in the first quarter of 2017, and compared to consensus of 4.4 billion euros.
Even so, UBS thinks the German bank's valuation looks "cheap".
"Valuation would be attractive under the assumption that Deutsche's CIB revenues stabilise and even recover in 2018," it said.
Given the expectation of rising rates and higher volatility, UBS believes 2018 will be a "crucial, decisive year" for Deutsche's CIB business.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.