Shares of Deutsche Bank (NYSE:DB) traded lower on Thursday morning as the company’s fourth-quarter revenues of €6.3 billion missed the analysts’ expectations of €6.5 billion. The figure, however, is the highest since 2016 and also increased by 7% on a year-over-year basis.
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Based in Frankfurt, Germany, Deutsche Bank is a multinational investment bank and financial services company.
Apart from the revenue miss, the company reported an otherwise upbeat quarter. The massive restructuring plan that the bank implemented in 2019 appears to have had a positive impact on the Q4 quarter.
Furthermore, Deutsche Bank was able to reduce costs in Q4 as well, as they declined 7% from the same quarter last year. This helped boost the company’s net profit to $2 billion, up significantly from €315 million in the fourth quarter of 2021.
Going forward, Deutsche Bank expects revenues to continue climbing up, while credit loss provisions are anticipated to remain stable based on assumptions of improving economic conditions.
Is DB a Buy?
Overall, Wall Street analysts are cautiously optimistic about DB stock with a Moderate Buy consensus rating based on seven Buys, four Holds, and one Sell. The average price target of $15.94 implies 18.2% upside potential from current levels.
