7/8/2019, 11:53 AM (Source: TeleTrader)
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Analysts skeptical of Deutsche Bank's outlook

Investment bankers and equity managers expressed cautious optimism on Monday on Deutsche Bank AG's targets set out in the plans for major restructuring. UBS pointed to market environment and potential issues during the overhaul and the risk of side effects.

The report says the push is aimed at getting away from the debt to equity spiral, while ING stressed it is crucial. The Dutch bank's analysts called the outline "convincing enough" but also underscored the impact on income. They noted the German lender lowered the capital adequacy standard. Morgan Stanley said there are still structural issues. While Deutsche Bank addressed costs and the struggling investment division, it still seems to lack a "high return platform," according to the update.

The expenses predicted for the initiative surprised to the upside, Citi estimated and expressed doubt in the embattled financial giant's ability to return the promised €5 billion to shareholders by 2022. CFRA said previous plans have resulted in failure and underscored the management is facing pressure in the business environment and by competitors. However, the price target was left at €6.5 per share with a sell grade.

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