Europe’s Investment Banks Upbeat On Advisory And Underwriting

Europe’s investment-banking-exposed stocks are cheap, as the current levels of revenues are sustainable and cost discipline at the industry level is improving, note Deutsche analysts

Matt Spick and Bilal Hafeez of Deutsche Bank in their research report titled: “European Investment Banks” are most upbeat on Advisory and Underwriting.

Europe's Investment Banks: Cheap valuations

The Deutsche Bank analysts note after several years of declining revenues, current implied valuations of European investment banking divisions are too low. The analysts believe there is a durable level of demand for advisory, issuance and trading services, with the banks already are on the right track on costs.

Considering European investment banking divisions are valued...