SaxoTV

#SaxoStrats - Buying 'undervalued' Deutsche Bank

147 views
February 10, 2016 bank, bank of america, bank of england, bank of england governor, bank of england inflation report, bank of japan, banking, banking and finance, banking capital, banking crisis, banking crisis¨', banking equity, banking industry, banking market, banking regulation, banking regulator, banking sector, banking system, banking transactions, banks, banks 2014, banks 2014ban, banks stocks, deutsche, deutsche bank, deutsche borse, deutschebank, deutschland, eq, eq3, equities, equities 2014, equities in china, equities over valued, equities prices, equities saxo, equities strength, equities trading, equities v bonds, equity, equity analyst, equity bubble, equity clients, equity correction, equity decline, equity falls, equity index, equity market, equity market 2014, equity market 2015, equity markets, equity platform, equity portfolio, equity portfolios, equity research, equity rise, equity risk premium, equity risk premiums, equity strategy, equity trades, equity trading, equity us, equtiies, logistics, london, long, long positions, long term investment, peter garny, saxo tv, saxostrats, share price falls, shares, tradingfloor.com
Despite a collapse in the share price, down around 60% since August 2015, Head of Equity Strategy Peter Garnry is buying Deutsche Bank stock.

Alongside the latest message of re-assurance from the bank's senior management, that bonds will be bought back in an effort to prove the bank has the capability to pay its debt, Peter sees a strong capital base and underlying operating profit unchanged.

"Risk-weighted assets are at 400 bn EUR. Only 1% return after-tax on those assets is enough to price Deutsche Bank at P/E 5x which is significantly below peers. We believe a re-pricing of the stock will happen now as investors begin to look more realistic at the capital and underlying profit." adds Peter. 

Buy at current levels.

Trailing stop: EUR 11.11 with increments of 0.21 cents 

Target: EUR 20.00