Group 1 - Morgan Stanley raised Deutsche Bank's (DB.US) European stock target price from €29.2 to €29.5 while maintaining an "Overweight" rating, highlighting the undervalued growth potential of its private banking business [1] - Deutsche Bank's private banking segment consists of wealth management and retail banking, with retail banking expected to achieve breakeven in 2024 and an ROE projected to rise to 4% by 2025 and 10% by 2028, while wealth management's ROE is stable around 20% with an average annual PBT growth of approximately 6% [1] - The completion of the "Unity project" (Postbank integration plan) marks a turning point for Deutsche Bank, with expected improvements in retail banking profitability through branch network optimization, digital channel promotion, and cost structure adjustments [1] Group 2 - Despite the investment banking segment accounting for 45% of Deutsche Bank's PBT and facing uncertain short-term prospects, the improvement in private banking profitability is expected to offset some of this pressure, with private banking's contribution to group profits projected to rise from 26% in 2024 to 30% by 2027 [2] - Deutsche Bank recently raised its CET1 capital target from 13% to 13.5%-14%, aiming to secure regulatory approval for a second round of stock buybacks estimated at €250 million [2] - The report emphasizes that while the capital target increase may exert short-term pressure on the stock price, the enhancement in profitability will drive valuation recovery [2]