Buy, hold, sell: COG Financial Services, Macquarie, CBA shares

Financial shares are underperforming this week, down 5.5%, while the S&P/ASX 200 Index (ASX: XJO) is 1.3% lower.

Let’s take a look at some newly revised ratings on three ASX financial shares.

COG Financial Services (ASX: COG)

The COG Financial Services share price closed at $1.62 yesterday, down 0.3% for the day and down 22% year-to-date (YTD).

This week, Shaw and Partners retained a buy rating on this ASX financial share with a 12-month price target of $2.45.

COG is Australia’s largest asset finance group. One of its business divisions is novated car leases and salary packaging.

In a note, the broker said COG Financial Services would benefit from the electric vehicle (EV) fringe benefits tax exemption continuing unchanged until April next year.

The broker said:

From April 2027, the full exemption will apply to vehicles priced below A$75,000, covering around 85% of EV purchases.

From April 2029, eligibility will reduce to a 25% FBT exemption for vehicles priced below the luxury car tax threshold (~A$91,000) 

COG Financial Services Limited (ASX:COG) continues to screen as very attractive, trading on a FY27 free cash flow yield of 17% and a FY27 PE of ~8x.

Our valuation implies 12.5x FY28 EPS, broadly in line with the sector’s average PE of 12.3x since 2020 despite ongoing regulatory headwinds. 

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price closed at $244.53 on Thursday, up 3.3% for the day and up 20% YTD.

This week, Morgans kept a hold rating on the ASX financial share and raised its target from $223 to $248.

Morgans said:

MQG delivered a very strong FY26 result with NPAT (A$4.8bn) up +30% on the pcp and +8% above company-compiled consensus.

MQG is a quality franchise, and a proven performer, but with <10% upside to our PT, we maintain our Hold call.

Commonwealth Bank of Australia (ASX: CBA) 

The CBA share price closed at $156.42 yesterday, up 1.8% for the day and down 2.9% YTD.

It’s been a big week for CBA shares.

The CBA share price plunged 10.2% in its largest one-day fall ever,after the bank’s 3Q FY26 update on Wednesday.

Changes to negative gearing and capital gains tax announced on Tuesday night in the Federal Budget didn’t help, either.

Experts fear the changes will disincentive property investment, thereby reducing housing credit growth over time.

Morgan Stanley said there are already signs that home loan and savings deposit growth are moderating from strong levels last year.

In a note, the broker said:

We believe RBA rate hikes and higher fuel prices increase the probability that a slowdown takes hold in coming month.

This week, the broker retained its sell recommendation on CBA shares with a slightly reduced 12-month price target of $130.

The post Buy, hold, sell: COG Financial Services, Macquarie, CBA shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.