Gold is 2025’s best performer. UBS sees more upside
On Tuesday, Deutsche Bank (ETR:DBKGn) analysts increased their price target on Commerzbank AG (CBK:GR) (OTC:CRZBY) shares to €29.00, up from the previous €26.00, while reaffirming their Buy rating on the stock. The revision follows Commerzbank (ETR:CBKG)’s strong first-quarter results for 2025, which exceeded expectations, particularly in net interest income (NII).
The analysts noted that the bank’s NII for the first quarter was 2% above forecasts. They highlighted Commerzbank’s effective management of deposit costs and the bank’s decision to raise its replicating portfolio, which is expected to create additional positive momentum in the future. The improvement in fixed income market pricing also contributed to the analysts’ optimistic outlook.
Deutsche Bank’s revised estimates for Commerzbank are based on a high-single-digit increase, driven primarily by the robust NII performance. They expressed a more bullish stance than the bank’s own guidance for 2025 net interest income and net profit.
Commerzbank’s stock is currently trading at 7 times earnings per share (EPS) and offers a 14% total yield, with a valuation at 0.86 times tangible book value. The analysts anticipate an expected return on tangible equity (ROTE) of 12.6%. The reiteration of the Buy rating and the increased price target to €29.00 reflect the analysts’ confidence in the bank’s financial prospects.
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