JPMorgan downgrades Commerzbank stock rating to Neutral despite price target hike

Published 09/09/2025, 08:48
JPMorgan downgrades Commerzbank stock rating to Neutral despite price target hike

Investing.com - JPMorgan downgraded Commerzbank AG (ETR:CBK) (OTC:CRZBY) from Overweight to Neutral on Tuesday, while raising its price target to EUR33.00 from EUR30.00.

The downgrade comes despite JPMorgan’s acknowledgment that Commerzbank management has "delivered strongly" in turning the bank around and establishing a path to sustainable double-digit return on tangible equity (RoTE).

JPMorgan cited Commerzbank’s 119% total return year-to-date as a key factor in the rating change, stating the stock now appears "fairly valued" with "limited upside" at its current valuation of 9.8x P/E and 1.2x P/TBV for a projected 12.4% RoTE in 2027.

The investment bank noted that while Commerzbank has outlined an ambitious plan targeting a net result of €4.2 billion by 2028 (up from €2.7 billion in 2024), market consensus is already aligned with this target, suggesting reduced potential for positive surprises.

JPMorgan increased its December 2026 sum-of-parts price target from €30 to €33, reflecting its view of a lower cost of equity for the banking sector overall.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.