Analysts at Espirito Santo said Deutsche’s management are bring “far too ambitious” with plans to slash costs while growing revenues faster than the market expects.
Investors are also worried by Deutsche is undercapitalised by up to €4.6bn (£3.7bn), Espirito Santo said in a note yesterday. The bank could be forced to raise capital as new regulations loom, they added.
The analysts gave the thumbs down to several plans set out by Deutsche bosses at an investor day last week. Management said they want to raise return on equity to 12 per cent by 2015, compared to Espirito Santo forecasts of nine per cent, while stripping out 16 per cent of costs in a number of core divisions.
Researchers at Nomura and UBS have also balked at some of the targets.