Using the TipRanks Smart Score tool, we have shortlisted two German shares, Commerzbank (DE:CBK) and Deutsche Lufthansa (DE:LHA), that score a ten on ten. The score of “Perfect 10” implies their high potential to surpass the market returns. With Moderate Buy ratings from analysts, these stocks remain appealing choices for investors within the German market.
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The Smart Score evaluates stocks based on eight crucial factors, assessing their potential to outperform the market. These factors include the ratings provided by top-performing analysts, the buying or selling activities of hedge funds, as well as fundamental and technical indicators. Stocks with high scores like eight, nine, or ten are more suitable options for investors because of their high chances of beating the market’s returns.
Let’s take a look at the details.
Deutsche Lufthansa AG
Deutsche Lufthansa is among the prominent airlines in Europe, serving as the national carrier of Germany and operating on a global scale. 28 days ago, Lufthansa got the perfect score of 10 on the Smart Score tool.
The company’s stock has recovered with the revival of global travel and has gained 35% in the last year. This was also visible in its Q1 2023 earnings announced in May. The airlines witnessed strong demand and expect it to continue during the summer holiday season. The revenues grew by 40% to €7.02 billion but were still behind the forecast of €7.57 billion.
Analysts remain bullish on the stock considering the robust travel demand, increased capacity, and improved pricing leading to more stable profits. Yesterday, Barclays analyst Andrew Lobbenberg reiterated his Buy rating on the stock and predicted an upside of 84.5% in the share price.
Is Deutsche Lufthansa a Buy?
According to TipRanks’ analyst consensus, LHA stock has a Moderate Buy rating based on a total of 12 recommendations, of which eight are Buy.
The average price prediction is €12.51, which is 35.7% higher than the current price level.
Commerzbank AG
Leading German banking group Commerzbank has recently earned the score of “Perfect 10” on the Smart Score tool.
The bank’s latest earnings report for the first quarter of 2023 helped the stock gain positive ratings from analysts. Following a good performance during the quarter with higher profits, the bank reaffirmed its guidance for the full year. The bank reported a net profit of €580 million in Q1, representing a significant 95% year-on-year increase.
Following the quarterly results, analysts are bullish on the full-year numbers and have confirmed their ratings on the stock.
Most recently, five days ago, UBS analyst Daniele Brupbacher reiterated her Buy rating on the stock, suggesting growth of almost 70% from the current level.
Commerzbank Share Price Forecast
CBK stock has a Moderate Buy rating on TipRanks backed by seven Buy, five Hold, and one Sell recommendations.
The average price target of €13.90 implies an upside of 44% from the current trading level.
Conclusion
These stocks have garnered bullish views from analysts due to their positive outlook for the entire year 2023. Analysts anticipate a 44% increase in CBK’s share price, while LHA is expected to have a potential gain of approximately 35%.
Both companies have a “Perfect 10” on the TipRanks Smart Score tool.
