Deutsche Bank Shares At Highest Level For Years – Analyst Raises PT Further

Deutsche Bank shares (ETR:DBK) have come off a strong year, with a 12 month double up not putting analysts off raising expectations further. A recent price target increase from Morgan Stanley pushed its target to €32 from €29, reaffirming an Overweight rating on the shares.

The stock is currently priced at €28.56, with DBK currently trading around the highest range it has been in more than a decade. With gains of 70%, since the start of the year, unsurprisingly, Deutsche Bank is significantly outperforming its European banking peers and the broader DAX index.

Deutsche Bank's recent success is underpinned by robust financial results. The bank reported its highest half-year profit since 2007, driven by successful restructuring efforts and growth initiatives.

Second-quarter pre-tax profits reached €2.4 billion, a substantial increase from €400 million in the same period last year, aided by the release of legal provisions.

The positive earnings momentum is reflected in key financial metrics.

Deutsche Bank's trailing twelve-month revenue stands at €29.24 billion, with a net income of €4.86 billion, supported by a reasonable forward P/E ratio of 9.45, and a dividend yield ~2.40%.

Technically, Deutsche Bank is exhibiting bullish signals. The stock is trading above its 50-day EMA, indicating a healthy uptrend. The Relative Strength Index (RSI) is at 70.85, nearing overbought territory but still confirming strong upward momentum. Bollinger Bands suggest the price is at the upper end of its recent trading range, consistent with a potential breakout.

Deutsche Bank's Q2 earnings surpassed expectations, with revenues reaching €7.8 billion and a profit of €1.2 billion. This performance beat consensus estimates of €0.78 per share, further solidifying investor confidence.

The bank’s return on tangible equity was reported at 10.1% in the second quarter, highlighting its improved financial standing.