Commerzbank with 14 percent opportunity
The Commerzbank stock is in a consolidation phase after its peak in May 2024. With bonus certificates with Cap, investors can still earn high returns even if the consolidation lasts longer.
Despite the Commerzbank stock giving back significant ground from its 12-month high of 15.83 Euro on May 22, 2024, to its current level of 14.30 Euro, it remains among the top five stocks in the DAX with a price increase of 31% since the beginning of the year. The uncertainty following the European election weighed on the stock prices of European banks, including that of Commerzbank.
Despite the uncertainty, analysts at Warburg Research reaffirmed their buy recommendation for the Commerzbank stock with a price target of 17 Euro.
The Investment Idea
For investors considering a investment in the undervalued Commerzbank stock and wishing to significantly reduce the risk associated with direct stock investment, bonus certificates with Cap offer attractive return opportunities and a safety buffer. With these products, investors can earn double-digit percentage returns in the coming months.
Bonus certificates with Cap offer investors an advantage over direct stock purchases as they enable high returns even when stock prices are stagnant or declining. However, certificate investors must forgo the unlimited profit potential of stock investments and potential dividend payments.
How it Works
If the Commerzbank stock does not touch or fall below the barrier of 9.30 Euro by the certification date of the bonus certificate, then the bonus certificate with Cap will be redeemed on June 27, 2025, with a bonus level of 16.50 Euro.
Key Data
With the DZ Bank bonus certificate on the Commerzbank stock (ISIN: DE000DQ4T7P2), the bonus level and Cap are set at 16.50 Euro. The active barrier up to the certification date, which is June 20, 2025, is set at 9.30 Euro. Investors could buy the certificate at 14.42 Euro with the Commerzbank stock price of 14.30 Euro.
The Opportunities
Given that investors can currently buy the certificate for 14.42 Euro, they could earn a gross return of 14.42% in twelve months if the stock price does not fall below 9.30 Euro or 34.97% below its current price by the certification date.
The Risks
If the Commerzbank stock touches or falls below the barrier of 9.30 Euro and the stock price is below the Cap on the certification date, then the certificate will be redeemed with the stock price on that date. If the price is below 14.42 Euro, the certificate investment will result in a loss.
*This post does not constitute a recommendation to buy or sell Commerzbank stocks or investment products based on Commerzbank stocks. No liability is assumed for the accuracy of the data.
- An experienced financial advisor might suggest considering Commerzbank's bonus certificates as a strategic financial investment for consumers looking to capitalize on Commerzbank's share prices without the risk associated with direct stock investment.
- During the consolidation phase of Commerzbank's stock, investors who hold assets in Commerzbank bonus certificates with Cap could still benefit from attractive return opportunities, even if the share prices remain stagnant.
- Analysts often provide stock tips, such as the buy recommendation for Commerzbank's stock by Warburg Research, which can be valuable information for investors interested in making commercial financial investments in the banking sector.
- Securities like the DZ Bank bonus certificate on Commerzbank's stock allow investors to gain a safety buffer while still potentially reaping double-digit percentage returns on their financial investments, depending on the stock's performance and the certificate's specific terms.
