UPDATE: Citigroup Upgrades Deutsche Bank to Buy on Easing Risks

Citigroup upgraded Deutsche Bank

from Neutral to Buy. Citigroup noted, “Over past 12m, DBK has underperformed European banks by c8%. We adjust our reported earnings forecasts to reflect latest results (see page 5). With an underlying RoTE of 10-12% over 2013-15E and a number of contingency & regulatory risks easing, we upgrade to Buy with a new PT of €45 (from €39) as we reduce our cost of equity assumption from over 12% to c11%.” Deutsche Bank closed at $51.66 on Thursday.