Europe could outperform the US this year, as the ‘fragile’ [according to Draghi] recovery starts to create some foundation.
$DB:$DBK – Deutsche Bank FV = 45
$DB:$CBK – CommerzBank FV= 16
Pick is $DB:DBK – on a forward p/e of 9x, and 2% dividend yield, and upside of 13%, this is a great stock to get exposure to Europe with some yield and upside potential. They have a virtual monopoly of Investment banking in Europe and a very client focused Bank.
buy 39. TP = 45, keep core , stop 35 for 1.5/1 Risk reward.
$KO and $PEP trade at exactly the same 5Y implied growth rates of 16%,You could therefore argue that $KO is expensive, as $PEP is more diversified than $KO – but $KO has had some recent upgrades – they need new products – last product was Coke zero 3 years ago.
As for Shorting? I would ‘nt short any name in the US at the moment!
buy Deutsche Bank FV=53 instead