Investing.com — Deutsche Bank AG (DBK:GR) (NYSE:DB) shares rose 6% Thursday following a price target increase from Morgan Stanley and the announcement of a collective bargaining agreement at Postbank.

Morgan Stanley raised its price target on Deutsche Bank to EUR36 from EUR34, naming the German lender as its top pick among European investment banks ahead of second-quarter earnings. The firm said it is “turning incrementally more positive” on the bank, citing underappreciated revenue momentum and appealing valuation. Morgan Stanley analysts expect Deutsche Bank to announce or signal a EUR500 million buyback.

The bank also reached a collective bargaining agreement with trade unions ver.di, DBV, komba and DPVKOM covering Postbank employees. The 28-month agreement, running from April 1, 2026 to July 31, 2028, includes a two-stage salary increase. Monthly remuneration for employees covered by collective agreements will increase by EUR175 starting July 1, 2026, followed by a 2.9% increase from July 2027.

Apprentices will receive remuneration increases totaling EUR150 in several steps, and existing agreements for permanent employment of apprentices will be extended. Protection against dismissal has been extended until the end of 2028, along with binding location agreements for branches and other sites.

Deutsche Bank stated the collective bargaining agreement will not affect the bank’s financial outlook.

Morgan Stanley analysts, including Giulia Aurora Miotto, expect European investment banks to report strong second-quarter results, with equities increasing 19% and FICC up 8% for the group. Deutsche Bank is currently trading at EUR29.7.

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