The S&P/ASX 200 Index (ASX: XJO), as most investors would know, has had a bit of a wild time of it since February. It’s actually been a positive six weeks since the end of the second month of the year. The ASX 200 has gained 7.85%, although this move upwards has come with some significant volatility.
For instance, the ASX 200 has swung from a 1% loss since the start of April to a modest gain. But the picture is a lot brighter for a major ASX 200 constituent – the Commonwealth Bank of Australia (ASX: CBA).
CBA shares have spent the past six weeks rising an impressive 13.74%. That’s including the modest gain of 0.056% we’ve seen today. The CBA share price is $106.61 at the time of writing.
This pleasing gain has put CBA within a few dollars of its all-time high of $110.19 reached in November.
So, after this performance, ASX investors might be wondering whether it is too late to buy.
Well, let’s see if ASX brokers reckon CBA shares are a buy or a sell.
Is the CBA share price a buy or a sell today?
Well, the news isn’t good for CBA investors when it comes to current ASX broker opinion. As my Fool colleague James covered this week, one broker who reckons CBA is a sell is Citi.
The broker gives CBA shares a 12-month price target of just $90.75. This implies that the ASX 200 bank share has a slide of almost 15% in front of it over the next year. While Citi sees good things ahead for the ASX banking sector as a whole, it doesn’t believe the current CBA share price is justified.
But it doesn’t end there. As we covered earlier this month, broker Macquarie is also bearish on CBA shares. Macquarie has an underperform rating on the CBA share price, with a 12-month target of $90. That again implies a potential downside of around 15%. Macquarie reckons the bank’s upcoming earnings report for FY2022 will disappoint. It’s predicting margin pressures and slowing growth.
So that’s the view of two prominent ASX brokers on CBA shares right now. Not exactly what you would call unbridled optimism. But, as always, we shall have to wait and see if these opinions turn out to be accurate.
CBA has a market capitalisation of $181 billion, with a dividend yield of 3.51%, based on today’s share price.
The post The CBA share price has leapt 14% since February. Too late to buy? 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 over 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 January 13th 2022
More reading
- ASX 200 midday update: Bank of Queensland sinks, Allkem jumps
- 5 things to watch on the ASX 200 on Thursday
- Here are the top 10 ASX shares today
- 3 ASX All Ordinaries shares scaling new multi-year peaks today
- This lithium miner is set to list on the ASX next month following its IPO, and counts a Tesla supplier among its key investors
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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 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/sERTzXY
Leave a Reply