Commerzbank AG : First signs of a reversal
Entry price | Target | Stop-loss | Potential |
---|
€10.45 |
€9.28 |
€10.6 |
+11.2% |
---|
Technical indicators currently hint at a trend reversal to the downside. As a result of this situation, new short positions could be open on the share Commerzbank.
Strengths● The group's high margin levels account for strong profits.
● The tendency within the weekly time frame is positive above the technical support level at 8.04 EUR
Weaknesses● Stock prices approach a strong long-term resistance in weekly data at EUR 11.64.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Sales estimates for the next fiscal years vary from one analyst to another. This clearly highlights a lack of visibility into the company's future activity.
● With an expected P/E ratio at 50.74 and 15.91 respectively for both the current and next fiscal years, the company operates with high earnings multiples.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.
● The three month average target prices set by analysts do not offer high potential in comparison with the current prices.
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