DWS: Oddo upgrades stock

(CercleFinance.com) - Oddo BHF has upgraded its rating on the DWS stock from "neutral" to "buy", a "mechanical consequence" of increasing its corresponding target price from 31.
7 euros to 37.8 euros, giving the German asset manager's stock upside potential of close to 20%.

Barring a turnaround, DWS should be able to achieve a C/I (cost/income) ratio of 65% in 2021, compared to around 73% two years ago. Analysts also believe that Deutsche Bank has a vested interest in helping DWS to reduce its C/I to maximise its valuation, they say.

The publication of Q2 2020 results has led the broker to increase its 2020 earnings estimate by 16%, followed by 24% in 2021, which is 9% above the pre-publication consensus (for 2020) and 4% (for 2021).



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