The Commerzbank Stock: Potential for Growth and Positive Trend

Last Updated: 20. November 2023By

The Commerzbank stock has risen by around 8 percent since the presentation of the quarterly figures and is now again stable above the mark of 11 euros (as of November 20, around 11 a.m.). Since the beginning of the year, the price of the paper has risen by almost 27 percent – the level of early March shortly before the regional bank crisis is now almost reached again.

The positive trend in the Commerzbank stock is based on the good Q3 figures and the optimistic outlook for the coming years. For investors, it is exciting: At least 70 percent of the profits are to be paid out to shareholders through dividends and share buyback programs in 2024, and at least 50 percent in the following 3 years. Accordingly, the majority of analysts also see further price potential in the Commerzbank share.

Commerzbank: Strong figures, raised targets In the 3rd quarter of 2023, Commerzbank was able to top the strong previous quarter: With around 2.76 billion euros, the revenues were slightly above the Q2 value and about 46 percent above the previous year’s level. The group result could be significantly increased to 684 million euros – after 9 months of the financial year, the result is around 1.83 billion euros and thus almost twice as much as in the previous year period.

For the current year, Commerzbank has raised its forecast again or made it more specific. The bank now expects revenues of around 10.6 billion euros, an interest surplus of 8.1 billion euros and a group result in the range of 2.2 billion euros. The profit is expected to rise to 3.4 billion euros and the return on equity to climb to 11 percent by 2027.

Commerzbank share: The direction is right The current figures and plans for the coming years show: Things are currently going well at Commerzbank, and the bank benefits more from higher interest rates due to its classic credit business than many competitors. This also creates further price opportunities for the Commerzbank share, and the 12 euro mark, which has not been sustainably broken through for a long time, can soon be cracked.

The majority of analysts see price potential in the paper – some examples: Goldman Sachs has raised the price target to 16 euros with a hold recommendation and Deutsche Bank even sees the price target at 17 euros. Other research firms are not quite as optimistic, but most of them recommend buying Commerzbank stocks. Investors with medium and long-term investment horizons should definitely keep an eye on the Commerzbank share.