Commerzbank share: 41 percent potential – and a warning

In the past few days, Commerzbank shares have been making good money on the bullish side. Within a few days, the MDAX-listed bank share managed to rise from the strong and important technical chart support zone above EUR 3.92 to the daily high reached yesterday at EUR 5.208. With 5.176 euros and 1.97 percent daily increase, the paper said goodbye to XETRA trading on Wednesday. It is a price level where Goldman Sachs analysts continue to see high upside potential for the stock.

In a recent study, the US investment bank’s share experts raised their price target for Commerzbank shares to EUR 7.30. That is “only” 10 cents more than before, but from the current level there is still more than 41 percent price potential for the financial stock – if it reaches the price target. By the way, Goldman Sachs still only has a “neutral” rating for Commerzbank shares; the new price target is based primarily on revised estimates.

However, the equity analysts are also sending a warning to investors – with regard to the entire banking sector and with a view to the ECB. Should this suggest an extension of the dividend break beyond the turn of the year 2020/2021 in December, this would be bad news for the banking sector in the opinion of the equity analysts.

In terms of the chart, there is another risk to be taken into account with the Commerzbank share: After the recent price increase, the share price is just below the important resistance level at EUR 5.35, the striking recovery high so far after the corona crash and the pandemic crisis, which also triggered it was the dividend pause in the banking sector. A stable breakout above this would be an important buy signal for the MDAX. If the Commerzbank share misses the break, however, there could be a setback. The first supports can then be found between 4.77 / 4.86 euros and 5.02 / 5.06 euros, the most recently overcome technical obstacles. Setbacks here would be negative signals for the bank’s share price.


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