11:30 AM EDT, 07/28/2025 (MT Newswires) -- Deutsche Bank ( DB ) is positioned for long-term upside, helped by cost controls, stronger earnings visibility and potential benefits from EU investment plans, RBC Capital Markets said Monday.

The brokerage said the bank's business mix leaves it well placed to gain from any acceleration in German and broader European economic activity. RBC expects Deutsche Bank's ( DB ) upcoming strategic update to outline a path to at least a 12% return on tangible equity, supported by cost and capital optimization.

"The relative investment case for DBK's shares remains intact given the gearing to an acceleration in growth in Germany and levers in DBK's control to improve performance," according to the note.

RBC noted softer near-term trends, citing a 9% sequential revenue decline in Q2 and subdued investment banking fees, though adjusted pre-provision profit still rose 8% from a year earlier on 2% revenue growth and a 1% reduction in costs.

The brokerage raised its 2025 earnings-per-share estimate by 10% and made smaller upward revisions for later years. It also lowered its cost-of-equity assumption to 12% and lifted its price target to 29 euros ($33.72) from 25 euros.

The firm has an outperform rating on Deutsche Bank ( DB ) and removed its speculative risk designation.

Price: 32.73, Change: -0.75, Percent Change: -2.24