Commerzbank shares crash after downgrade by Bank of America - financial experts see falling interest rate expectations as the reason

Commerzbank shares crash after downgrade by Bank of America - financial experts see falling interest rate expectations as the reason

According to a report by www.deraktionaer.de,
At the beginning of the week, Commerzbank shareholders had to accept another sharp loss in share price. At the beginning of the year, Commerzbank was already struggling with price losses, which have continued in the last few weeks. Bank of America has lowered its price target for Commerzbank shares from EUR 13.00 to EUR 12.00 and now rates the shares as “underperform” after “neutral”. The experts at Bank of America see the return on equity remaining at 8 percent and are forecasting lower earnings per share than the broad analyst consensus.

This pessimistic forecast from Bank of America could have an impact on the market and the financial industry. The renewed decline in Commerzbank shares suggests that investors are losing confidence in the company. This could lead to general uncertainty in the financial industry and also have a negative impact on other financial institutions.

The forecast of a significantly reduced capital distribution could also have an impact on the share price. A reduction in capital distributions of up to 32 percent could further undermine investor confidence and lead to further price losses.

Bank of America's sell recommendation also contributes to a decline in confidence in Commerzbank. Although 17 of the 25 experts still recommend buying, Bank of America's negative assessment could lead to a rethink. The lower price target and the reduced return on equity expectation could influence the investment decisions of many investors.

In today's intraday trading, the share is trading below the uptrend formed at the beginning of September at 10.80 euros. The 50-day line at 11.05 euros was also fallen below. In addition to the round mark of 10.00 euros, the GD100 also offers support at 10.55 euros below the GD200 at 10.38 euros.

It remains to be seen how the prices develop during trading. Invested investors should monitor the market carefully. Bank of America's forecast could have a significant impact on future developments in Commerzbank shares.