Deutsche Bank Reports Decent Third-Quarter Results; Shares Fairly Valued

No-moat Deutsche Bank reported third-quarter profit before tax of EUR 554 million, ahead of the EUR 459 million consensus estimate collected by Deutsche Bank. The slightly better-than-expected result was due to its investment bank performing ahead of anticipations, more than offsetting higher operating expenses. We updated our model with various minor changes to revenue and cost assumptions, and lift our fair value estimate to EUR 11 per share from EUR 10.30, previously. The change in our fair value estimate is however, driven primarily by time value of money since our last model update.