Saturday 13 July 2019 10:12 am

UBS becomes first broker to upgrade Deutsche Bank after overhaul

Investor caution has loomed large over Deutsche Bank since it unveiled its turnaround plans last weekend, but the troubled German lender has at least secured an upgraded rating from one broker.

UBS has become the first broker to upgrade Deutsche’s stock since the radical overhaul was announced, moving its recommendation from “sell” to “neutral” in a note published yesterday.

Analysts at UBS said the new plans would yield a more balanced risk to reward ratio, raising their 12-month share price target from €5.70 to €6.60.

In the last week brokers and investors have been digesting the latest cost-cutting plans, which include slashing 18,000 jobs across its global offices.

Boss Christian Sewing also plans to shut the firm’s loss-making equities business.

Shares in the group have dropped 10 per cent in the last week on the back of the new measures, which some analysts have expressed doubts over.

However, in its note UBS said: “The plan shows willingness and determination to change the profile of DB, the home regulator will be supportive we think”.

In recent years the German bank has been hit by a swathe of challenges, including rising costs, botched merger plans and a series of high-profile scandals.