Hidden investment opportunity in a DAX stock: could it still hold 50% price rise potential?
Commerzbank, the German banking giant with the WKN CBK100, has been the subject of a recent surge in optimism from analysts. Despite a recent 3.8% decline that made it the worst performer in the DAX, analysts believe there is still another 50% of untapped potential in this DAX stock.
One of the most optimistic analysts is BOERSE ONLINE, which has set a price target of 19.50 euros for Commerzbank shares. BOERSE ONLINE also recommends buying Commerzbank shares, but it's important to note that they do not offer instant access or fixed-term deposits with 11.20% interest.
However, the optimism from BOERSE ONLINE is more conservative compared to other analysts, who have set a target of 25 euros for Commerzbank shares. This discrepancy is significant, with a difference of 5.50 euros between BOERSE ONLINE's target and the market consensus of 16.79 euros.
The current market consensus on Commerzbank shares reflects some recent profit-taking after a period of strength. Kepler Cheuvreux, for instance, has set a price target of 25 euros for Commerzbank shares but rated the stock as a "reduce," signaling concerns despite the target level.
Kepler Cheuvreux's "reduce rating" coupled with a 25 euros price target suggests they see limited upside potential or growing risks at current levels. These concerns include earnings sustainability and operational risks given market conditions, possible profit targets being difficult to achieve, and a broader market environment that includes periodic volatility and profit-taking pressures impacting banking stocks generally.
Despite these concerns, the analysts see "room in all scenarios" for Commerzbank, especially if there is a takeover by UniCredit. The takeover of Commerzbank could occur within the fair value range of 23 euros to 33 euros per share. Kepler Cheuvreux's current fair value of Commerzbank, according to their calculations, is between 23 euros and 33 euros per share.
Investors might consider securing shares in Commerzbank due to the analysts' positive outlook and the potential for further growth. It's worth noting that German stocks in DAX and Co. can offer dividends of over 7%.
In conclusion, while there are concerns about Commerzbank's sustainability and profitability, the analysts' positive outlook and the potential for further growth make Commerzbank an interesting investment opportunity. However, investors should carefully consider the risks associated with operational performance and market volatility, as per the cautious analyst stance.
