DB Deutsche Bank AG - Registered Shares

Deutsche Bank downgraded flatexDEGIRO to Hold from Buy and cut its price target to €31 from €46, implying approximately 19% upside from its latest closing price of €26.06. Analyst Mengxian Sun cited slowing customer growth, normalization in trading activity and client cash balances, and intensifying competition that could increase customer acquisition costs. Sun expects net profit growth to decelerate to 9% year over year in 2027, compared with approximately 40% in each of the previous two years. Recent changes to the company’s Supervisory and Management Boards have also raised concerns about governance and strategic stability. Higher interest rates continue to support net interest income, although declining customer cash balances partly offset the benefit. Germany’s pension reform could provide a significant long-term growth opportunity by encouraging greater retail participation in capital markets, boosting customer acquisition and cross-selling. $DB

Deutsche Bank named its top European stock picks for the next 12 months, adding six names and removing six from its Q3 list. New additions include ING, SPIE, ICG, UCB, Groupe ADP and RWE, replacing Barclays, Bunzl, Euronext, Novartis, IAG and E.ON. All names on the new list carry a Buy rating. Groupe ADP has a €130 target versus a €110 close, with Deutsche Bank expecting a proposed French regulatory agreement to improve visibility through 2034 and potentially provide a near-term catalyst. Among continuing picks, the bank sees Siemens Energy potentially expanding its €6 billion buyback program to as much as €12 billion, with a €210 target versus €146. Deutsche Bank also highlighted Safran’s 28% growth in spare-parts sales and 40% increase in services revenue in H1 2026, setting a €398 target versus €335. For Volkswagen, the bank estimates underlying margins near 4% excluding about €10 billion in special items, versus reported 2026 guidance of 0%-1%, with a €105 target versus €71.30. $DB