Goldman Sachs Downgrades Deutsche Bank to Neutral from Buy

Goldman Sachs Downgrades Deutsche Bank to Neutral from Buy

Goldman Sachs has downgraded Deutsche Bank (DBK:GR) from Buy to Neutral, citing recent stock performance and valuation metrics. The investment bank maintains a price target of EUR34.00, indicating an 8% upside potential compared to an average 9% across its coverage universe. Deutsche Bank's stock has rallied significantly, reaching near its 52-week high of $37.55, with a year-to-date return of 121% [1].

The downgrade is based on Deutsche Bank's stock trading at a price-to-earnings multiple of roughly 10 times Goldman Sachs' 2025 earnings per share estimate and 9 times its 2026 estimate. Despite the downgrade, Goldman Sachs expects Deutsche Bank to continue improving its profitability and outperform consensus earnings expectations in both 2025 and 2026 [1].

BofA Securities has also reinstated coverage on Deutsche Bank with a Buy rating and a price target of €29.00, underscoring its strategic advantage in Germany. Analysts at BofA Securities anticipate that changes in Germany's fiscal policies will benefit Deutsche Bank starting in the second half of 2026, with Germany's GDP projected to grow by 1.5-1.8% in the third and fourth quarters of that year [2].

Goldman Sachs remains bullish on Deutsche Bank's prospects, expecting the bank to deliver progressive increases in capital return to shareholders through dividends and share buybacks. The analyst also predicts revenue growth in the low to mid-single digits in Deutsche Bank's corporate and private bank over the next two years, which should further improve the bank's profitability [3].

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.ainvest.com/news/goldman-sachs-downgrades-deutsche-bank-neutral-commerzbank-sell-2508/
[3] https://www.cnbc.com/2025/08/27/goldman-sachs-downgrades-deutsche-bank-following-massive-year-to-date-rally.html