It’s time to move to the sidelines when it comes to Deutsche Bank , according to Goldman Sachs. Goldman Sachs analyst Chris Hallam downgraded the bank stock to neutral from buy. The analyst said Deutsche Bank’s rally has made its valuation now look “broadly fair.” U.S.-listed shares of Deutsche Bank have surged 116% in 2025, putting them on pace for their best year ever. DB YTD mountain DB YTD chart “Deutsche Bank’s share price has re-rated from 6.1x P/E at the end of 2024 to 10.1x P/E currently,” Hallam wrote. “This stands slightly ahead of the market cap weighted average for our coverage of 9.5x, whereas DB is set to grow earnings at a broadly similar rate to the coverage average in 2026E and 2027E, with slightly lower profitability.” However, the analyst remains largely bullish on the stock. Hallam pointed to Deutsche Bank as a potential major beneficiary of Germany’s new fiscal package, given its corporate banking footprint. “We expect Deutsche Bank will continue to improve its profitability and outperform consensus earnings expectations both this year and next (2025/26E), while delivering progressive increases in capital return to shareholders across dividends and buybacks,” the analyst wrote. Further revenue growth and cost control should improve the bank’s profitability, with Deutsche’s investment banking vertical remaining its primary revenue contributor, Hallam said. He also expects revenue growth in the low to mid-single digits in Deutsche Bank’s corporate and private bank over the next two years. This should further increase the bank’s base of more recurring revenue streams.
