Commerzbank: shares rise on the back of broker upgrade

(CercleFinance.com) - Shares in Commerzbank are currently up 3.
2% at 8.8 euros after UBS upgraded the stock from "neutral" to "buy," while maintaining a 12-month target price of 10.2 euros after the recent slump in the share price.

In a research note, UBS analysts say Commerzbank's share price has now fallen almost 40% from its peak in January 2018, on lower German bond yields and a softer outlook for 2018.

They now see an "attractive asymmetric risk reward profile."

"Share price only factors in current ROTE (return on tangible equity) and limited optionality," UBS pointed out in its report.

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