Commerzbank share: Takeover rumors push up

Last Updated: 15. Januar 2024By

Commerzbank stock has started the new year on a very decent note, with a gain of over 5 percent since the beginning of 2024. In today’s morning trading, the stock has continued to climb and is trading at around 11.50 euros (as of January 15, 2024, 11 am). The increase in share price is linked to takeover rumors.

But even aside from the vague speculations, Commerzbank stock is on a good path. After the Q3 results, the DAX company raised and specified its annual targets – and Warburg Research has recently significantly increased its price target for the stock.

Commerzbank with strong development Thanks to the interest rate development, Commerzbank has recently earned significantly more. After 9 months of the 2023 fiscal year, the group’s net income was at 1.83 billion euros, significantly higher than in the same period of the previous year. For the full year, it is expected to reach about 2.2 billion euros – and by 2027 it could even rise to 3.4 billion euros.

Things are going well for the company, and investors are eagerly awaiting the Q4 results, which are expected on February 15. In addition, speculative takeover rumors have boosted Commerzbank stock today. According to the news agency Bloomberg, Deutsche Bank is considering possible takeovers, with Commerzbank reportedly being one of the potential targets. A few years ago, there was already talk of a merger between Deutsche Bank and Commerzbank.

Commerzbank stock: positive signals It is unclear whether there is any truth to the takeover rumors. While Commerzbank stock has benefited from the speculation in today’s morning trading, without concrete evidence of such a takeover, it is unlikely to have any further impact on the stock.

What will be more interesting for investors is the presentation of the Q4 results – and subsequently, the review of the 2023 fiscal year and outlook for the current year. Commerzbank has recently generated significantly higher revenues and earnings, which has also been reflected in the stock price. Over the course of the year, the stock has gained around 22 percent – since the low point of the Corona crisis in spring 2020, it has even increased by over 250 percent.

Warburg Research also has a positive view of Commerzbank stock: In the latest analysis from last week, the price target was increased from 14.90 euros to 17.70 euros. According to Warburg, this means that Commerzbank stock still has a potential increase of over 50 percent.