CBA shares have picked up another sell rating, and this time the reasoning has a lot to do with the housing market in general.

Commonwealth Bank of Australia (ASX: CBA) are at $158.93 at the time of writing.

That values the country’s largest lender at roughly $265.7 billion.

The shares have fallen about 5% over the past twelve months.

Nowadays, three separate experts think there is further to go.

Why a broker is calling sell on CBA shares

Remo Greco of Sanlam Private Wealth has the bank rated as a sell.

He is not the only one.

Tony Locantro of Alto Capital and John Athanasiou of Red Leaf Securities both issued sell ratings in late August.

Greco was direct about what worries him.

Investors may want to consider cashing in some gains until a clearer picture emerges about the state of Australia’s housing market, the outlook for interest rates and the broader outlook for credit growth moving forward.

Athanasiou made a slightly altered version of the same argument.

Australian banking remains a mature industry, with intense competition across mortgages and deposits limiting the potential for outsized earnings growth.

What the FY26 result actually showed

However, the financial numbers were not the problem.

CBA delivered cash net profit after tax of $10,982 million in FY26, an increase of 7%.

Revenue also rose 7% to $30,153 million, and the net interest margin held steady at 2.05%.

The fully-franked dividend reached $5.05 per share across the year.

Home loans more than 90 days in arrears stood at 0.73%, while the loan impairment expense rose 9% to $788 million.

That is a good result from a very well-run bank.

It is also mid-single-digit growth, which matters once you look at the price being asked for it.

The valuation problem

CBA trades on a price-to-earnings (P/E) ratio of around 24.3 and yields around 3.2%.

In contrast, ANZ Group Holdings Ltd (ASX: ANZ) trades on 19 times earnings and yields 4.45%.

An investor is paying nearly 30% more per dollar of earnings at CBA while receiving notably less income for the privilege.

The premium has been justified for years by better technology, a stronger deposit franchise, and lower funding costs.

The question is whether those advantages are worth quite this much when profit is growing at 7%.

What could go wrong for CBA shares?

The housing cycle is the immediate risk.

Home loan applications have fallen roughly 15% since the May Federal Budget.

National home values dropped 0.9% in August and now are 3.6% below their March peak.

Australia’s 10-year government bond yield has reached around 5.19%, its highest level in 15 years.

ANZ now expects the Reserve Bank to lift the cash rate by 25 basis points to 4.60% in November.

A higher cash rate widens deposit margins, but it also slows credit growth and pushes arrears higher.

The case for staying put

CBA remains the highest quality bank in the country by some distance.

The company’s deposit base is unmatched, its technology spending is years ahead of its peers, and its credit book has already absorbed one full rate cycle without trouble.

Arrears of 0.73% are elevated but not all that alarming.

Foolish takeaway

CBA shares are not expensive by accident.

The market pays a premium because the bank has consistently earned one.

The real question is whether 24 times earnings is sensible for a business growing profit at 7% a year in a slowing housing market.

On balance, I think the risk now sits with the buyer rather than the long-term holder.

Trimming an oversized position looks reasonable, though I would not sell CBA shares outright on the strength of a broker note alone.

The post A broker just put a sell rating on CBA shares. Is Australia’s biggest bank finally too expensive? appeared first on The Motley Fool Australia.

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• How to earn $10,000 in passive income a month with these ASX dividend shares
• Sell alert! Why this expert is calling time on CBA shares and this top ASX 200 stock
• Term deposits are paying more than ever. Are ASX dividend shares still worth it?

Motley Fool contributor Mark Verhoeven 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 Scott Phillips.

ASX tech stocks have had a rough week.

To illustrate, on Wednesday, Xero Ltd (ASX: XRO) fell 5.2% to $98.90.

WiseTech Global Ltd (ASX: WTC) dropped 5.16% to $37.65.

These results occurred as the ASX 200 had its worst session in three months.

The question worth asking for investors is whether the selling has finally gone too far.

Why ASX tech stocks fell so far

The drop is not linked to any news out of the companies themselves.

Bond yields have risen sharply, with the US 10-year Treasury reaching 4.79% and Australia’s long bond returning to levels last seen in 2011.

Technology businesses earn most of their profit years into the future, so a higher discount rate hits them harder than anything else on the market.

This has unfortunately been compounded by a 60% chance of a Reserve Bank rate rise this month.

Here are a few tech stocks hit particularly hard.

1. WiseTech Global

WiseTech is the most interesting name on this list.

The company’s shares have fallen from a 52-week high of $99.70 to $37.65, which is a decline of more than 60%.

In its latest results, FY26 revenue rose 79% to US$1,395.9 million, helped enormously by the e2open acquisition.

Underlying EBITDA climbed 56% to US$644.5 million and free cash flow increased 43% to US$410.7 million.

The problem lies in what the future holds for the company.

FY27 guidance is for revenue growth of just 6% to 10%, and an active ACCC investigation is adding doubts in the back of investors’ minds.

At 50 times earnings, WiseTech is trading at a significant multiple for a company only projected to grow revenue in the single digits.

2. Xero

Xero is the highest quality operator of the three and now is within 70 cents of its 52-week low.

FY26 operating revenue rose 31% to $2.75 billion and annualised monthly recurring revenue jumped 37% to $3.27 billion.

The company added 506,000 customers to reach 4.92 million globally, while average revenue per customer rose 23% to $55.44.

Adjusted EBITDA grew 18% to $757.4 million, though net profit fell 27% to $167.4 million on Melio acquisition costs.

Chief executive Sukhinder Singh Cassidy noted the strength of the platform:

We have powerful momentum across our markets, and delivered strong EBITDA growth while absorbing the Melio integration.

FY27 guidance points to revenue of $3.62 billion to $3.73 billion, which is another year of roughly 30% growth.

3. Life360

Life360 Inc (ASX: 360) is the highest risk of the three.

Shares have fallen nearly 40% year-to-date.

Despite this, second-quarter revenue rose 38% to US$159 million and adjusted EBITDA jumped 53% to US$31.1 million.

However, look a little deeper and the picture unravels.

Net income fell 17.8% to US$5.1 million, and the net income margin halved to 3% from 6%.

At such high multiples, margin reductions are very bad news for investors.

What could make ASX tech stocks work from here

Two things would give ASX stocks some form of relief.

The first is any sign that the Reserve Bank will not need to raise rates. That is because falling yields lift long-duration valuations, such as those belonging to tech stocks, immediately.

The second is evidence that these businesses can convert revenue growth into profit growth without having to rely on acquisitions.

Foolish takeaway

Xero looks best positioned in the short-term, because it is growing at 30% with a strong network effect and it trades near a 52-week low.

WiseTech is cheaper than it was but still carries an unresolved regulatory investigation.

In contrast, Life360 has the strongest growth and the weakest proof of profitability.

A year of falling prices has made ASX tech stocks far more interesting than they were in September 2025.

It has not yet made them safe, and anyone buying here should expect more volatility before the rate cycle settles.

The post Are these ASX tech stocks finally a buy again? appeared first on The Motley Fool Australia.

More reading

• WiseTech shares are turning red again. Is the rally over?
• Why I think Zip and WiseTech shares could be buys in September
• Top 3 beaten-down ASX 200 shares from August worth a second look
• WiseTech shares had their best month in a year. Is this a buying opportunity?
• The five worst-performing ASX 200 shares in August unmasked

Motley Fool contributor Mark Verhoeven 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 Life360, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Life360, WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The team at Morgans have provided fresh commentary on several ASX shares. 

In good news for investors, the broker is optimistic about these three stocks. 

Here’s what the broker had to say. 

Collins Foods Ltd (ASX: CKF)

Collins Foods is a prominent quick-service restaurant operator, primarily known for managing KFC franchises across Australia and Europe.

Its share price is down almost 20% over the last year, however Morgans sees a rebound in sight following the recent AGM. 

The broker said Collins Foods AGM trading update was positive. 

Group sales rose 6.6% over the first 17 weeks of FY27, with Australia resilient and European SSS (same-store-sales) inflecting from the weak start over the last 4 weeks, which we view positively in a tough consumer environment. 

Trading strengthened through the last 4 weeks, with KFC SSS of +3.1% in AU, +3.1% in the Netherlands, driven by the new Halal-certified range, and -0.1% in Germany, a material improvement on the -7.8% (Netherlands) and -7.2% (Germany) start over the first 8 weeks.

The broker has a buy rating and A$10.60 target price on these ASX shares. 

From current levels, this indicates over 28% upside. 

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Dalrymple Bay Infrastructure owns and operates the metallurgical coal export facility at Dalrymple Bay,  located at the Port of Hay Point, south of Mackay in Queensland. 

It is the world’s largest coal export facility. 

It has risen 20% in the last 12 months, but share price weakness since June has led Morgans to upgrade its view on these ASX shares. 

We upgrade from HOLD to ACCUMULATE, given potential TSR at current prices of c.12% (including cash yield of 5.7%). 12 month target price +4 cps to $5.47/share due to refinements to tax modelling. Otherwise, no change in our fundamental outlook for the business over coming years.

These ASX shares closed trading yesterday at $5.27. 

Smartgroup Corporation Ltd (ASX: SIQ)

SmartGroup provides specialist employee management services to organisations throughout Australia. 

The company’s services include salary packaging, novated leasing, vehicle fleet management, payroll, employee share plan administration, and workforce optimisation.

Morgans is optimistic about the company’s next 12 months following its recent half-year results.

SIQ reported 1H26 NPATA of A$42.4m, up 11% yoy and broadly flat on 2H25. Strong revenue growth (+5.5% hoh) was absorbed by higher opex spend (+7.3% hoh), softening EBITDA margins to 41.1% (-100bps on 2H25). 

Given the meaningful share price pullback, we upgrade to an ACCUMULATE (previously HOLD). The 2H will benefit from the unwind of a substantial revenue pipeline, an ongoing supportive demand backdrop across novated leasing (policy led) and potential full-year capital management initiatives. A$12.15ps price target.

This indicates just over 7% upside from current levels. 

The post 3 ASX shares just got big upgrades and are tipped to rise almost 30% appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Liontown, Collins Foods, and Goodman shares
• Here are the top 10 ASX 200 shares today
• Smartgroup posts record H1 2026 results: earnings jump, dividend up
• Dalrymple Bay Infrastructure posts stronger profit and higher distribution

Motley Fool contributor Aaron Bell 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 Collins Foods and Smartgroup. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.