Goldman Sachs Downgrades DWS to Sell, Cuts EPS Estimates Through 2027

Key Facts

1Goldman Sachs downgraded asset management firm DWS to a "Sell" rating.

2The bank lowered its inflow and EPS estimates for the years 2026 and 2027.

In a move reflecting growing headwinds within the European asset management sector, Goldman Sachs has downgraded DWS to a "Sell" rating. According to reports, the downgrade is primarily driven by a weakening outlook for the firm's ability to attract new capital. Furthermore, the bank has lowered its estimates for both capital inflows and earnings per share (EPS) for the 2026 and 2027 fiscal years.

This downgrade arrives as asset managers grapple with margin compression across the industry. Per market data, major peers such as BlackRock and Amundi are navigating similar structural shifts amid global market volatility. Compared to previous quarters, analyst consensus suggests a slowdown in DWS's Assets under Management (AuM) growth by over 4% according to Bloomberg data, validating Goldman's concerns regarding medium-term profitability.

Investors should monitor European equity levels closely following German Trade Balance data, which reported a surplus of 14.5 billion euros as of June 9, 2026. Key catalysts to watch include upcoming management commentary regarding cost-cutting measures to offset earnings pressure, as well as Eurozone inflation prints which will dictate broader investor risk appetite in the region.