Commerzbank continues to deliver and repeat their plans to increase profits. I think Commerzbank’s result estimates are reasonable, looking back a few years their estimates have been conservative. Long term I think banks that are well run, such as Commerzbank, should be traded at P/E=10 or a bit higher on long term profits. The new CEO (former CFO) elaborated on 3 billion in profit and current market cap. (19 billion), there is room for higher share price. With these numbers I se a potential of 58%, in couple of years, share price from today’s €16 to €25. And we will be getting share buybacks and dividends on the way. Short term there can be high volatility, for example Uni-Credits interest in Commerzbank or not.

Commerzbank's restructuring pressures current profits. The market expects profits to recover 2023/2024. The historical profit margin is at best 10% in the last 10 years (compared to 25-45% for Swedish banks). With a market cap of €8B the shares are close to 10x EV/E in 2024 (€0.70 per share). This is a fair value for the sector with the turn-around and market risks for Commerz bank. Sentiment and momentum could keep the share price moving.