Goldman Sachs Lifts Deutsche Bank Forecast Amid Improving Revenue and Leverage

Goldman Sachs has upgraded Deutsche Bank to 'buy' from 'neutral', citing an expected improvement of about 300 basis points in return on tangible equity over three years. The broker expects this boost to be driven by improving revenue momentum and positive operating leverage.

The upgrade is based on Goldman's forecast that Deutsche Bank will deliver stronger earnings growth than the sector from 2027 onward, with upside risks to consensus estimates on both profitability and shareholder payouts.

According to Goldman Sachs, Deutsche Bank is entering an era of higher profitability, aided by an increasingly supportive domestic backdrop in Germany. The broker forecasts a CET1 ratio above 14% by the end of 2026, making the bank increasingly capital generative.