Deutsche Bank Shares Make New Decade High as YTD Outperformance Continues

Deutsche Bank shares (ETR:DBK) reached a new high of €33.57, fueled by sustained positive momentum and a year-to-date gain that is rapidly approaching a doubling. This performance underscores the effectiveness of ongoing strategic initiatives and a favorable market environment for the German banking giant.

The stock's ascent reflects a remarkable recovery, with year-to-date gains of 98.54% and a staggering 114.22% increase over the past 12 months. This upward trajectory has caught the attention of markets, prompting re-evaluations of Deutsche Bank's intrinsic value and future prospects. The recent price action positions the stock at levels not seen in several years, signaling a potential shift in long-term investor sentiment.

Underpinning this surge is Deutsche Bank's strong financial performance, most notably its record third-quarter earnings reported in October 2025. Net profit rose by 7% to €1.56 billion, driven by a 19% increase in fixed-income and currency trading revenues and a 27% surge in origination and advisory services. These robust results, exceeding analyst expectations, mark nearly five consecutive years of quarterly profits, a testament to CEO Christian Sewing's successful turnaround strategy. The bank's ability to consistently deliver profitability has instilled confidence in its operational efficiency and strategic direction.

Price Targets

Analyst sentiment, while mixed, generally reflects a cautiously optimistic outlook. Goldman Sachs downgraded Deutsche Bank's stock to ‘Neutral' in August, citing valuation concerns following the stock's significant rally, while maintaining a price target of €34.00. This suggests limited immediate upside potential based on their assessment. Conversely, JPMorgan raised its price target to €38.40 in November, maintaining an ‘Overweight' rating and lauding Deutsche Bank as a “remarkable turnaround story.”

JPMorgan anticipates a return on tangible equity exceeding 12% by 2028, indicating strong confidence in the bank's long-term profitability. The divergence in analyst opinions underscores the complexities in valuing a financial institution undergoing significant transformation.

Further bolstering investor confidence is Deutsche Bank's share buyback program, announced in March. This initiative, worth up to €750 million, aims to reduce share capital and enhance shareholder value. The program ran from April to September, contributing to the demand for the stock and supporting its price appreciation. The buyback signals management's belief that the stock is undervalued and represents an efficient use of capital.

Leadership continuity also plays a crucial role in maintaining market stability. The nomination of Chairman Alexander Wynaendts for another term by the bank's supervisory board in November 2025 provides assurance of consistent governance and strategic direction. This continuity is particularly important during a period of significant transformation and market volatility.

With bulls eyeing up a double YTD, you would have to glance back more than a decade to find the last time Deutsche Bank shares traded up at these levels. You can pick the €33.50 level out as one that provided resistance back in 2012, but with precious little coming close in between, this is price discovery taking place once again.