24.03.2009 11:19 Glance-STOCKS NEWS EUROPE-Commerzbank gains, seen undervalued vs peers
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10:02GMT 24March2009-Commerzbank (News/Aktienkurs) up, seen undervalued vs peers
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Shares in Commerzbank add 4.8 percent, making the bank the top
gainer among German blue chips, as traders say it is undervalued
compared to peers and is now gaining on the back of the Obama administration's
plan to purge toxic assets from bank balance sheets.
'Commerzbank has been slow to catch up with the rest of the German banking
sector, perhaps because of its partial nationalisation. Now latecomers to the
recent interest in financial stocks see it as one of the last potential
gainers,' says a local trader.
Commerzbank trades at 2.23 times its estimated earnings for 2009, less than
half of the 5.38 2009 P/E ratio average of its industry-related peers, according
to data from Thomson One analytics.
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