Commerzbank: Credit Suisse initiates with 'neutral' rating
(CercleFinance.com) - Credit Suisse on Friday started coverage of German lender Commerzbank with a "neutral" rating and a price target of 5.
Germany has been a particularly challenging market for banking stocks, with prospects for future consolidation insufficient to offset record-low rates and strong competition, Credit Suisse's research summary said.
"We also think consensus already reflects Commerzbank's cost-cutting plan while potentially being too optimistic on its provisions and CET1 (core equity Tier 1 ratio)", the investment bank added.
Ultimately, Commerzbank may have to consider more radical strategic solutions, including a sale of Polish subsidiary mBank and/or pursuing growth in non-bank financials, Credit Suisse pointed out.
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