Deutsche Bank Upgrades Royal Bank of Scotland (RBS) to Buy

Deutsche Bank upgraded Royal Bank of Scotland (NYSE: RBS) to Buy with a price target of $35p.

Deutsche analyst says, "We are cutting sector earnings to reflect slower growth (higher bad debts), unchanged rates to end 2012 (lower margins), and weaker market revenues. StanChart, Core RBS estimates are largely unchanged, Barclays and HSBC 2012 adj EPS are cut ~10%; LBG fares worst down 23% (2013 -6%). We think prices discount worse and, though we are cautious on our ability to precisely call a turn, we think the value proposition is clear. Given a 36% fall in the last month, at 0.45x TNAV and <3x target EPS, we are upgrading RBS to Buy. Barclays (NYSE: BCS) is our top pick."

For more ratings news on Royal Bank of Scotland click here and for the rating history of Royal Bank of Scotland click here.

Shares of Royal Bank of Scotland closed at $7.63 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Bristol-Myers Squibb and AstraZeneca said to discuss megamerger - can it happen?
• DXC Technology (DXC) PT Raised to $12 at TD Cowen
• Starlink, AI Capex, rockets: deep dive into SpaceX’s first ever public report