Deutsche Bank: Oddo cuts target price
(CercleFinance.com) - While maintaining its Neutral rating on the stock, Oddo is cutting its target price to 11 euros, to take into account: 1/ restructuring costs that are expected to be high, which would correspond to a more radical restructuring plan; 2/ the loss of revenues and earnings that could result from a change in the group's CIB strategy.
DBK has announced changes in its management: Mr Sewing is becoming DBK's new CEO, replacing Mr Cryan.
Oddo thinks that it can be assumed that the change in management aims to achieve faster cost reduction targets. A more aggressive cost reduction plan is therefore a realistic assumption and will result in restructuring costs that could be significant.
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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.
DBK has announced changes in its management: Mr Sewing is becoming DBK's new CEO, replacing Mr Cryan.
Oddo thinks that it can be assumed that the change in management aims to achieve faster cost reduction targets. A more aggressive cost reduction plan is therefore a realistic assumption and will result in restructuring costs that could be significant.
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.