Commerzbank: Credit Suisse initiates with 'neutral' rating
(CercleFinance.com) - Credit Suisse on Friday started coverage of German lender Commerzbank with a "neutral" rating and a price target of 5.
3 euros.
Germany has been a particularly challenging market for banking stocks, with prospects for future consolidation insufficient to offset record-low rates and strong competition, Credit Suisse's research summary said.
"We also think consensus already reflects Commerzbank's cost-cutting plan while potentially being too optimistic on its provisions and CET1 (core equity Tier 1 ratio)", the investment bank added.
Ultimately, Commerzbank may have to consider more radical strategic solutions, including a sale of Polish subsidiary mBank and/or pursuing growth in non-bank financials, Credit Suisse pointed out.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
3 euros.
Germany has been a particularly challenging market for banking stocks, with prospects for future consolidation insufficient to offset record-low rates and strong competition, Credit Suisse's research summary said.
"We also think consensus already reflects Commerzbank's cost-cutting plan while potentially being too optimistic on its provisions and CET1 (core equity Tier 1 ratio)", the investment bank added.
Ultimately, Commerzbank may have to consider more radical strategic solutions, including a sale of Polish subsidiary mBank and/or pursuing growth in non-bank financials, Credit Suisse pointed out.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.