Finweek English Edition - - INVESTMENT -

BUY Af­ter a 58% run-up in the last year, traders may want to take prof its on the in­ter­na­tional f inan­cial ser­vices group. This is the view of Peter Garnry, the Head of Eq­uity Strat­egy at Saxo Bank. He rec­om­mends en­ter­ing the trade at be­tween €8.75 and €8.90 with a tar­get of €8 and a stop-loss of €9.07. He told clients: “Com­merzbank’s share is up 58% since its bot­tom in July, fol­low­ing a suc­cess­ful rights is­sue and bet­ter than ex­pected Q2 re­sults in Au­gust. How­ever, our Euro­pean bank­ing model re­tains a neg­a­tive view on Com­merzbank based on both the fun­da­men­tal and the tech­ni­cal pic­ture. With no up­ward re­vi­sions to re­turn on eq­uity in 24 months by sell-side an­a­lysts, the re­cent run-up in the share price has been taken to the ex­treme. We are look­ing to short Com­merzbank as a pull­back could oc­cur.”

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