Shares of Deutche Bank rose 2.07 percent to $14.3, ahead of its next quarterly financial report on Wednesday next week. The bank’s stock fluctuated between $14.01 and $14.32 before the earnings report.
Market analysts project the bank to post earnings of $0.45 per share for the recently concluded quarter, with $7.65 billion in revenue.
After the earnings report, investors will focus on Deutsche Bank’s guidance for the next quarter. Looking at the bank’s earnings track record, it managed to exceed quarterly estimates of $0.4 earnings per share. On the other hand, revenues hit $8.07 billion in March 2016, beating consensus forecasts of $8.05 billion.
The resilience in the outlook of Deutsche Bank is declining due to the considerably negative sentiment that analysts have issued. Wall Street analysts recommended the stock as a hold, while analysts at JPMorgan downgraded the stock to Neutral.
Deutsche Bank’s Top 3 Energy Stocks
While most analysts are reasonably optimistic about the energy sector as a whole, many seem to believe that next year could be the time when crude oil shows a price hike from current levels. Here are three stocks Deutsche Bank stocks to buy in the second quarter:
· Continental Resources
This firm has a huge exposure to crude oil. Continental Resources Inc. is a top independent oil producer in the United States.
Deutsche Bank expects the company to post four new STACK results, and it also anticipates continental to comment on additional oil rigs for the next fiscal year.
Encana Corp. is focused in the development, exploration, production and marketing of NGLs in Canada and the United States.
Deutsche Bank said that while wildfires in Canada halted some production, they expect Canadian NGL prices to climb. The bank’s price target for the company is $11.
· Parsley Energy
Parsley Energy Inc. is an independent oil and natural gas firm that operates in the acquisition, development, production, exploration and sale of crude oil and natural gas in the Permian Basin.
The company reported robust first quarter results that beat estimates. Deutsche Bank set a $32 price target for Parsley Energy.
Deutsche Bank to Abandon Postbank Spinoff
Deutsche Bank is likely to dismiss plans to spin off its retail segment Postbank due to a weak IPO market and the lack of a good offer from a potential buyer.
Germany’s biggest bank announced last year that it intends to sell Postbank, primarily to free up regulatory capital. However, Chief Executive John Cryan recognized that a flotation would weigh on the existing capital market environment, which has seen hardly any listings in Germany in 2016.
According to reports, the bank currently sees a small chance of floating Postbank by the end of 2017 and does not expect any good offers from possible buyers.
Meanwhile, Deutsche Bank denied a recent report that it planned to split, with one segment focused on capital markets and the other on retail and corporate clients, known as Project Jade.
The bank cleared out in a statement that Project Jade was not about dividing Deutsche Bank, but has been a long-running project designed to simplify its structure.