Commerzbank: Oddo BHF downgrades to 'reduce'
(CercleFinance.com) - Oddo BHF has downgraded its recommendation on the Commerzbank share from "neutral" to "reduce," having cut its corresponding target price to 6.
6 euros, a cut that mainly reflects reductions in the broker's estimates the day after the German bank reported its interim results.
Analysts say that the share's upside potential (+16%) is much lower than that of the sector (around +30%), as well as a risk inherent in the persistent weakness in group profitability even before the cycle has turned around. .
Oddo BHF also considers that a consolidation scenario is excluded, with the group having embarked upon restructuring that is too deep to consider a merger in the immediate future, with all prospective foreign candidates having withdrawn.
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