On Thursday, RBC Capital adjusted its outlook on Commerzbank AG (CBK:GR) (OTC: OTC:CRZBY), increasing the price target to EUR17.50 from the previous EUR15.25. The firm has maintained a Sector Perform rating on the bank's stock.
The adjustment follows recent developments where UniCredit (LON:0RLS) acquired a stake in Commerzbank (ETR:CBKG) AG. RBC Capital's analysis suggests that a takeover of Commerzbank by UniCredit, although not currently covered by the firm, appears more plausible now than in the past. The firm's analyst provided insights into what UniCredit might be willing to pay for Commerzbank, based on an expected 15% return on investment (ROI) and anticipated cost synergies.
According to RBC Capital, there is at least a 50% chance that a deal will occur between the two banking entities. The new price target combines Commerzbank's standalone fundamental value of EUR15.25 and the EUR20 per share that UniCredit could potentially offer, leading to the updated target of EUR17.50.
The Sector Perform rating suggests that RBC Capital expects Commerzbank's stock to perform in line with the sector average. Investors and market watchers will likely monitor the situation closely, as the potential acquisition could influence Commerzbank's market position and share value.
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