Deutsche Bank Downgrades Allfunds to 'Hold' After 34% Stock Rally

Deutsche Bank has downgraded its rating on wealth technology platform Allfunds to 'Hold' from 'Buy,' signaling a more cautious stance after a significant run-up in the company's share price. The stock's recent gains have brought it near the bank's valuation target, prompting the re-evaluation.

Valuation Reaches Target

The downgrade follows a 34% increase in Allfunds' shares since Deutsche Bank initiated coverage in July 2025, according to analyst David McCann. In a note to clients, the bank highlighted that this performance significantly outpaced the STOXX 50 index, which rose 17% over the same period.

Deutsche Bank maintained its price target at €9. With the stock recently closing at €9.025, the bank sees limited further upside from current levels, which is the primary driver for the ratings change.

Acquisition and Fundamentals Underpin Value

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Deutsche Bank's valuation model is heavily influenced by the pending acquisition of Allfunds by Deutsche Boerse. The bank's analysis assumes a 67% probability that the deal will be completed as planned. Allfunds has stated the transaction is on track to close in the first half of 2027, subject to regulatory approvals.

The ratings change comes despite a strong operational performance from Allfunds. For the first half of 2026, the company reported:

• Net revenue of €337.6 million, a 10% increase year-over-year.
• Adjusted EBITDA of €229 million, also up 10% on a like-for-like basis.
• Record assets under administration reaching €1.94 trillion, bolstered by €51 billion in net inflows.