Commerzbank shares fall following Deutsche Bank downgrade

Deutsche Bank has downgraded Commerzbank from ‘Buy’ to ‘Hold’, maintaining a price target of 42 euros. The decision follows increased strategic uncertainty regarding a potential takeover by UniCredit.

Commerzbank shares experienced a significant decline, dropping as much as 3.7% to reach their lowest level since early September. The stock fell below its 21-day moving average, a technical indicator often monitored by investors. Analysts suggest that previous drivers, such as rising interest income and high payouts, may already be priced into the stock, which is currently trading at a premium compared to its sector.

In addition to takeover speculation, there are indications of an extraordinary general meeting in January, which could involve changes to the supervisory board. Meanwhile, the German government has called for binding commitments regarding job security and maintaining operations within Germany.