Commerzbank: Oddo still says 'reduce' after Q3 results

(CercleFinance.com) - Oddo says Commerzbank's Q3 2019 results are better than expected, in particular with lower-than-expected risks and costs.


The broker believes that CBK could beat some of its 2019 targets, primarily in terms of costs and risks, although it says that revenues are expected to remain lower than in 2018.

Oddo confirms its forecasts, which are 9% above the consensus, with an adjustment limited to +2.5% for 2019, as well as 2020-2021.

Oddo maintains its 'reduce' rating on the share, with a target price of 5.90 euros. The broker says that a swallow doesn't make the Spring. The prospect of RoTE of less than 4%, while there are persistant doubts about the business cycle, represents an additional risk factor. Q3 results do not change this perspective much, the broker adds.


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