Commerzbank slips after RBC rating cut
BUZZ-Commerzbank slips after RBC rating cut ** Shares in Commerzbank CBKG.DE slip around 2% after RBC cuts the German lender to "sector perform" from "outperform", citing uncertainty from UniCredit's CRDI.MI takeover plans
** RBC says UniCredit's "Unlocked" plan and a potential HypoVereinsbank-Commerzbank tie-up could create value, but upside does not reward the risks
** Broker says value creation depends on UniCredit's "outside-in" assumptions, which may be harder to crystallise on time once it gains full access
** RBC sees "lots of moving parts" around the potential HVB deal, saying 11% ROI by 2030 depends on additional synergies and Commerzbank's free float could materially reduce
** Broker raises its 2030 EPS estimate by 7% to reflect UniCredit initiatives, but says higher forecast uncertainty and a higher cost of equity drive its downgrade
** Out of 17 analysts that cover Commerzbank AG, 9 rate the stock "strong buy" or "buy" and 7 rate it "hold" " - LSEG data
(Reporting by Basile Day)
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