As of May 26, 2023, a spokesperson from Deutsche Bank has confirmed that the bank actively manages a conservative liquidity profile. In fact, the bank would have exceeded its own target of 130% for the liquidity coverage ratio (LCR) even without the trades that were utilized to raise cash in March 2023. The LCR is a crucial metric that determines the extent of a bank’s access to ready cash to fund outflows, such as depositor withdrawals. At the end of 2022, Deutsche Bank’s LCR was an impressive 142%.
To raise cash in March 2023, Deutsche Bank used trades that involved swapping billions of euros in securities for cash and government bonds, which count towards its LCR. While the practice of using such trades to make a bank appear stronger is not uncommon among major banks, it was flagged by the European Central Bank (ECB) in a stress test conducted in 2019. Nonetheless, Deutsche Bank’s trades helped it raise its LCR to 143% at the end of its first quarter on March 31.
DB Stock Analysis: Stable Performance and Impressive Earnings Growth Suggest Long-Term Investment Potential
On May 26, 2023, Deutsche Bank (DB) opened at 10.43, slightly lower than the previous day’s close of 10.45. Throughout the day, the stock fluctuated within a range of 10.37 to 10.49. The day’s volume was 2,537,071, lower than the average volume of the past three months, which was 4,384,518. Despite the lower volume, the market cap of DB remained at $21.6B.
DB has shown impressive earnings growth in the past year, with a growth rate of 125.36%. This year, the earnings growth rate has slowed down to 16.51%, but it is still a positive sign for investors. The projected earnings growth rate for the next five years is 9.00%, indicating that DB is expected to continue performing well in the long term.
DB’s P/E ratio of 4.0 is lower than the industry average, which suggests that the stock is undervalued. The price/sales ratio of 0.56 and price/book ratio of 0.33 also suggest that the stock is undervalued compared to its peers.
Overall, DB had a stable performance on May 26, 2023, and the company’s impressive earnings growth in the past year and projected earnings growth for the next five years suggest that the stock is a good investment for the long term.
Deutsche Bank AGs Stock Shows Positive Trend with Potential for 37.87% Increase: Analysts Recommend Buying
Deutsche Bank AG’s stock showed a positive trend on May 26, 2023, offering a glimmer of hope for investors. Analysts have a median target of 14.43, with a high estimate of 20.92 and a low estimate of 11.41, representing a +37.87% increase from the last price of 10.47. The current consensus among 20 polled investment analysts is to buy Deutsche Bank AG stock. The bank has been working to turn its fortunes around by cutting costs, streamlining operations, and focusing on its core businesses. The positive outlook for Deutsche Bank AG’s stock price is a result of these efforts, as well as a more favorable economic environment. Analysts predict a significant increase over the next 12 months, with potential gains for investors who buy now.
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