Goldman Sachs Downgrades Deutsche Bank to Neutral, Suggesting 49.89% Potential Downside

Goldman Sachs has downgraded Deutsche Bank to Neutral from Buy, citing notable gains. Analysts forecast a slight upside, with a 12-month price target averaging $37.56, suggesting a 2.01% upside from its current trading price. However, GuruFocus estimates suggest a potential downside of 49.89% relative to its GF Value of $18.45.

Goldman Sachs has downgraded Deutsche Bank (DBK:GR) stock to Neutral from Buy, while maintaining a price target of EUR34.00. The investment bank cited the stock's recent rally and a valuation that is now considered "broadly fair" [1]. Despite the downgrade, Goldman Sachs expects Deutsche Bank to continue improving its profitability and outperform consensus earnings expectations for both 2025 and 2026.

The stock currently trades at a price-to-earnings (P/E) ratio of 11.36x, which is slightly undervalued based on Fair Value estimates. However, GuruFocus estimates suggest a potential downside of 49.89% relative to its GF Value of $18.45.

Institutional investors have shown strong interest in Deutsche Bank, with Wellington Management Group LLP increasing its holdings by 301.7% during the first quarter. Other institutional investors, such as GAMMA Investing LLC, have also significantly increased their stakes, indicating robust interest in the stock [2].

Deutsche Bank reported a quarterly revenue of $9.21 billion, exceeding analysts' forecasts despite an earnings miss of $0.54 EPS against an expected $0.78. Analysts from BofA Securities anticipate that changes in Germany’s fiscal policies will benefit Deutsche Bank starting in the second half of 2026. They project Germany’s GDP to grow by 1.5-1.8% in the third and fourth quarters of that year [1].

References:
[1] https://www.investing.com/news/analyst-ratings/goldman-sachs-downgrades-deutsche-bank-stock-to-neutral-on-fair-valuation-93CH-4211735
[2] https://www.marketbeat.com/instant-alerts/filing-wellington-management-group-llp-raises-position-in-deutsche-bank-aktiengesellschaft-db-2025-08-24/