Jan 26 (Reuters) - Shares in Deutsche Bank AG offers plenty of upside, despite a surprise fourth quarter loss unnerved investors, according to Barron’s in its Jan. 27 edition.
The German bank’s shares fell over 5 percent on Jan. 20 after it announced that various charges and lower-than-expected earnings caused a loss of 1 billion euros ($1.37 billion) for the quarter compared with an anticipated profit of 700 million euros, Barron’s reported.
Nonetheless, some fund managers and analysts are optimistic about the bank’s stock. Deutsche Bank now trades at a discount to book value of around 30 percent, despite a small rally that pushed the stock up more than 13 percent during the first two weeks of this year, Barron’s reported.
The fourth quarter loss is nothing more than “prudent housecleaning” that will place the bank in a better long-term position, Barron’s reported. Deutsche Bank, and most other big European banks, has been reducing its balance sheet and refocusing on its “core activities,” Barron’s reported. (Reporting by Suzanne Barlyn; Editing by Marguerita Choy)