DWS Analysts Stay Bearish Even as Goldman Lifts Target to 65 Euros

Metzler cut its DWS target to 62 euros and Goldman raised its to 65 euros, both keeping Sell ratings as shares closed at 68.45 euros.

Analysts covering DWS remain wary of the asset manager's equity, with two major houses keeping sell ratings in place this week despite adjusting their price targets in opposite directions. Metzler trimmed its target to 62 euros from 62.60 euros, according to media reports, while reaffirming its "Sell" call. A day earlier, Goldman Sachs had raised its own target to 65 euros from 60 euros — yet also stood by its sell recommendation.

The split adjustments stem from differing views on earnings momentum. Goldman analyst Oliver Carruthers lifted his estimates on the back of higher expected fee income, according to a dpa-AFX report, though he retained a cautious overall stance. Both brokerages now place their fair-value estimates well below where the stock actually trades, underscoring persistent skepticism about future fund inflows and valuation multiples in the current market climate.

Market Price Runs Ahead of Analyst Targets

DWS shares closed Friday's session at 68.45 euros, leaving the stock comfortably above both houses' targets. Over the past month, the equity has shed 8.4 percent, pulling further away from its 52-week high of 78.50 euros.

The recent soft patch coincided with a broader cooling across the German equity market. In a discussion on capital markets conditions, DWS fund manager Andre Köttner urged restraint, cautioning investors against chasing short-term trends. He pointed specifically to the artificial-intelligence boom and mounting nervousness among market participants.

Property Funds Draw Down as Investors Pull Money

Separately, real estate specialist Clemens Schäfer assessed conditions in the property sector on September 23, according to a Reuters report. Redemptions by investors at three open-ended DWS real estate funds forced the sale of properties. Schäfer did not, however, hold out the prospect of suspending share redemptions.

Product Lineup Gets a Refresh

Alongside these market movements, the fund company is pressing ahead with adjustments to its product range. Prospectus changes for DWS Invest II and DB Vermögensfondsmandat took effect on October 2.

Such housekeeping and revisions to investment terms are part of routine operations for asset managers. They reflect the ongoing reshaping of the portfolio in response to shifting client needs and regulatory requirements. For investors, the key question is the extent to which these measures support the fund family's cost structure and earning power.

Third-Quarter Report Looms as Key Test

The next major checkpoint comes on October 28, when DWS publishes its third-quarter results and presents them in a conference call for analysts and investors. Only that interim report will provide reliable data on how new business and fee income have actually performed in recent months, with management set to address inflows, profitability and operational developments.