Two 59%+ winners, four above 25% in Aug – How this AI model keeps picking winners
Investing.com - BofA Securities downgraded Commerzbank AG (ETR:CBK) (OTC:CRZBY) from Buy to Neutral on Thursday, while raising its price target to EUR31.70 from EUR30.00.
The German bank’s shares have surged 91% year-to-date, reaching what BofA Securities now considers a fair valuation at 9x P/E and 1.1x P/TBV for 12.5% ROTE in 2026E.
BofA Securities still views Commerzbank (ETR:CBKG) as "the cleanest way to position for the German fiscal expansion trade" and maintains estimates 11% above sell-side consensus for net profit in 2025-27E.
The firm remains constructive on Commerzbank’s fundamentals, citing solid NII growth, improving cost efficiency, strong capital build-up, and benign asset quality.
Despite the positive outlook, BofA Securities believes "the market has front-loaded most of the upside" and has switched to Deutsche Bank (ETR:DBKGn) as its top pick in Germany.
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