Top broker tips CBA (ASX:CBA) share price slide to $80

Is the CBA share price too expensive?
The post Top broker tips CBA (ASX:CBA) share price slide to $80 appeared first on The Motley Fool Australia. –

The Commonwealth Bank of Australia (ASX: CBA) share price has been a very strong performer in 2021.

Since the start of the year, the banking giant’s shares have risen a sizeable 25%.

This is more than double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.

Where next for the CBA share price?

Unfortunately for shareholders, a number of leading brokers believe the CBA share price is overvalued and have the equivalent of sell ratings on the company.

One of the most bearish brokers is Morgans. According to a recent note, its analysts have a reduce rating and $80.00 price target on the shares of Australia’s largest bank.

Based on the current CBA share price of $105.10, this suggests there’s potential downside of almost 24% over the next 12 months.

What is being said?

The note reveals that Morgans believes CBA is a quality bank, it just feels its shares are overvalued at the current level.

The broker has previously stated: “While we continue to believe that CBA has a relatively high quality retail franchise and a relatively good risk profile, we continue to believe that CBA is expensive relative to the other major banks.”

Elsewhere, earlier this month the team at Morgan Stanley retained their underweight and $90.00 price target on the bank’s shares.

Its analysts note that CBA has significant exposure to housing loans. In fact, it estimates that approximately 60% of its total loan balance relate to home loans.

In light of this, home loan approvals are a key driver of loan growth for the bank. So, with APRA recently increasing bank loan serviceability expectations, it fears this could weigh on CBA’s performance if it leads to lower home loan approvals.

Investors may not have to wait long to find out if this is the case. The banking giant is scheduled to release its first quarter results in the middle of next month. All eyes will be on the CBA share price that day.

The post Top broker tips CBA (ASX:CBA) share price slide to $80 appeared first on The Motley Fool Australia.

Should you invest $1,000 in CBA right now?

Before you consider CBA, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CBA wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

CBA (ASX:CBA) share price gains amid ‘smart’ new payments launch

What to expect from the CBA (ASX:CBA) Q1 result

Own CBA (ASX:CBA) shares? Here’s why mortgage competition is intensifying

CBA (ASX:CBA) share price up amid $15b MySuper deal

Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!