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Deutsche Bank Upgrades ING To Buy As Commodity Crash Hits Shares

As ING holds 10% upside potential and near-term surplus return potential, an analyst at Deutsche Bank upgraded ING to Buy and pegged a new target price at €14.5.

David Lock of DB in his August 26, 2015 research report titled: “Evaluating risks; Upgrade to BUY” forecasts a 7% dividend yield for ING through 2017.

ING share price dropped on lower commodity prices

Lock notes ING is now 16% off recent highs, as market concerns grow around the bank’s energy, Chinese, Russian and Ukrainian exposures. He also points out that regulatory risks around RWA inflation also continue to be digested by the market.

Lock believes these credit exposures represent around 9% of lending in total and his LLP estimates are more conservative than consensus. The analyst forecasts a 7% dividend yield for 2015-17 as the company pays out the capital surplus from insurance sales that is superior to the sector:

Turning his focus to country-specific issues, the DB analyst points...