Commerzbank: Morgan Stanley downgrades to 'equal weight'
(CercleFinance.com) - Morgan Stanley has downgraded Commerzbank to "equal-weight" from "overweight", trimming its target price for the stock to 6 euros from 6.
10 euros, saying that it is "time for a pause."
The downgrade comes after Commerzbank shares have risen by 30% since management changes were announced and comes about 80% since their one-year low, due to a combination of restructuring hopes and a general sector re-rating, Morgan said.
After this rally, the bank believes that the market will now look towards stocks with better revenue momentum and higher scope to resume dividends/buybacks in the near future.
From a longer term viewpoint Morgan Stanley still believes the shares have major scope to re-rate.
Commerzbank shares were down 1.2% in mid-afternoon trading on Wednesday, just underperforming the MDAX index, which is down 1%.
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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.
10 euros, saying that it is "time for a pause."
The downgrade comes after Commerzbank shares have risen by 30% since management changes were announced and comes about 80% since their one-year low, due to a combination of restructuring hopes and a general sector re-rating, Morgan said.
After this rally, the bank believes that the market will now look towards stocks with better revenue momentum and higher scope to resume dividends/buybacks in the near future.
From a longer term viewpoint Morgan Stanley still believes the shares have major scope to re-rate.
Commerzbank shares were down 1.2% in mid-afternoon trading on Wednesday, just underperforming the MDAX index, which is down 1%.
Copyright (c) 2021 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.