“Deutsche Bank AG shares rallied as much as 7% Tuesday after the bank completed a €2.96 billion ($3.88 billion) capital raising and reported stronger-than-expected first-quarter earnings.
“The capital increase, announced late Monday along with the earnings figures, led analysts at several banks including Nomura, J.P. Morgan and Credit Suisse to raise their recommendations on the stock, saying that the German bank now looks more attractive than its rivals.
“‘J.P. Morgan analysts said the bank is “finally starting to address its capital issues,’ and had set a ‘new capital bar for Eurobank peers.’
“The new stock was priced at €32.90, equal to Deutsche Bank’s closing share price Monday. Share placements typically come at a discount to encourage investor buying.”
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