What’s happening with the CBA (ASX:CBA) share price this week?

Young woman using computer laptop with hand on chin thinking about question, pensive expression.

The Commonwealth Bank of Australia (ASX: CBA) share price is in the red today, down 1.1% in afternoon trading.

That’s less than the 1.9% loss posted by the S&P/ASX 200 Index (ASX: XJO). Many blue-chip shares – particularly ASX 200 travel shares – have come under pressure from news of a new COVID variant emerging and spreading out of South Africa.

That’s today’s price action.

Below we take a look at what put CommBank in the news this week.

Brokers take bearish view on the CBA share price

The CBA share price is down 3% since last Friday’s closing bell. This was mostly driven by a 2.1% fall on Monday.

On Monday, the Motley Fool reported on what a number of leading brokers think about CommBank’s valuation. And most, as my Foolish colleague Zach Bristow reported, were bearish on the CBA share price.

Goldman Sachs recently cut its price target for CommBank to $81.74. That’s almost 14% below the current $94.72 per share. The broker aired concerns that Australia’s largest bank could lose market share in its mortgage business to increased competition from the other big banks.

Morgan Stanley and Macquarie Group Ltd (ASX: MQG) also believe the CBA share price is in for some headwinds, with both brokers having a price target of $87.50. Morgan Stanley lists CommBank’s shares as underweight while Macquarie gave the bank an underperform rating, citing, among other issues, the rock-bottom interest rate environment impacting the bank’s margins.

What’s in store for the Black Friday weekend?

If you’re wondering how retail sales might come off over the weekend, CBA had some encouraging news for ASX retail shares yesterday.

According to CommBank’s head of consumer and diversified industries in CBA’s Business Banking division, Jerry Macey:

The increase in sales in 2020 in comparison to 2019 bodes well for the Black Friday sales this coming weekend. Shoppers across the country are increasingly taking advantage of the recent move towards pre-Christmas discounting and we would expect this trend to continue this year.

CBA share price snapshot

The CBA share price hit all-time highs of $110.13 per share on 8 November. Since then it’s retraced by almost 14%, currently trading for $94.72.

Even with that retrace, CBA shares remain up around 15% year-to-date, compared to a 2021 gain of 10% posted by the ASX 200.

The post What’s happening with the CBA (ASX:CBA) share price this week? 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

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3nPYFy2

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s