The analyst added that this doesn't mean the bank is worthless, but that a number of Deutsche's branches are struggling, including the investment banking and asset management divisions. Davis also said that there are still a few bright spots in safer businesses.
"The regulatory environment is making investment banking in general much worse business than it was 10 years ago ... I think that retail and commercial banking is still a pretty safe business in Europe," she said.
For investors that are skittish on the European banks, there may be more opportunities in big U.S.banks. Chris Wheeler, bank analyst at Atlantic Equities, also told "Power Lunch" on Tuesday that American financial institutions are much better positioned than their European counterparts.
"The good news is people have recognized U.S. banks have been pushed along more quickly to repair their capital, their leverage ratios and these banks are in a much better position and further down the line," said Wheeler.