Evercore (EVR) is set to benefit from an accelerating mergers and acquisitions cycle, Deutsche Bank said in a note Thursday.

"Our positive view is by driven EVR's compelling risk/reward profile on strong leverage to an accelerating M&A cycle, strategic growth initiatives, and attractive valuation," the note said.

The report pointed to its "peer-leading" managing director productivity metrics and above-average deal size. It added that the stock still trades at a "meaningful discount" to peers even after recent share gains.

Deutsche Bank initiated coverage on the investment banking advisory company with a buy rating and $400 price target.

Price: 314.65, Change: -3.36, Percent Change: -1.06