Deutsche Bank analyst Matt O-Connor revised his ratings for three major US banks: JP Morgan, Bank of America, and Wells Fargo. The analyst downgraded JP Morgan to Hold, citing a limited near-term upside despite strong recent performance. He upgraded Bank of America to Buy, seeing an attractive entry point after recent declines, and also upgraded Wells Fargo to Buy, highlighting the potential for long-term growth once regulatory restrictions are eased.
Deutsche Bank analyst Bastian Synagowitz upgraded ArcelorMittal to Buy from Hold, citing attractive market exposure and a strong balance sheet. Despite a ‘tough’ second half of the year, the analyst sees upside potential with a midterm target price of approximately $31 per share.
Deutsche Bank analyst Justin Bowers initiated coverage on Concentra Group Holdings (CON) with a Buy rating and a $29 price target, citing the company’s strong fundamentals and growth potential. Bowers highlights Concentra’s high-quality healthcare services, mid-teens FCF per share growth potential, and superior center-level margins. The analyst expects Concentra’s inorganic growth to accelerate driven by its strong balance sheet and M&A capabilities.
Deutsche Bank has reported a 10% annual increase in net profit attributable to shareholders, reaching €1.275 billion ($1.365 billion) in the first quarter of 2024. This surpasses the €1.23 billion forecast by analysts. Revenue also grew by 1% to €7.8 billion, driven by gains in commissions, fee income, and fixed income and currencies. Other highlights include net inflows of €19 billion in Private Bank and Asset Management, a decline in credit loss provision to €439 million, and a CET1 capital ratio of 13.4%. The bank’s transformation plan, which aims to cut 3,500 jobs and achieve operational efficiencies of €2.5 billion, remains ongoing.
Deutsche Bank has reported a 10% increase in first-quarter profit due to a surge in fixed-income trading and deal-making within its investment banking division. The bank’s net profit reached 1.275 billion euros ($1.37 billion), surpassing analyst expectations and offsetting declines in other divisions. The investment banking arm regained its position as Deutsche’s primary revenue generator, outperforming the retail division. This marks the 15th consecutive quarter of profitability for the bank, a significant milestone after years of losses.
Deutsche Bank has maintained a Hold rating on General Motors, while raising its EBIT and EPS forecasts for 2024. The firm acknowledges GM’s recent stock price increase, driven by favorable market response to its first-quarter performance and revised upward guidance. GM management anticipates an improvement in second-quarter EBIT, supported by increased volume and recovery in international markets like China. However, potential pricing weakness remains a concern, despite stability in April pricing. Despite planning for a 2-2.5% decline in EBIT for the second half of 2023, GM’s pricing stability in April may positively impact the full-year outlook. The transition to electric vehicles (EVs) is expected to affect product mix, with higher EV volumes and lower margins. GM reiterates its near-term EV targets and aims for a 60-point EBIT margin improvement in 2024, with a mid-single-digit EV EBIT margin in 2025.
Ahead of their upcoming earnings reports, Deutsche Bank’s chart reveals that all seven ‘Magnificent 7’ tech stocks are below their 2024 highs, despite most remaining positive year-to-date. Nvidia leads the way with a 54% YTD gain but has dipped nearly 20% from its peak. Meta and Alphabet have also seen gains this year, while Tesla remains the worst performer in the S&P 500 since July 2023.
