The Commonwealth Bank of Australia (ASX: CBA) share price has been a positive performer this week.
Since the end of last week, the banking giant's shares have charged 7% higher to $74.40.
Why is the Commonwealth Bank share price charging higher?
Investors have been buying Commonwealth Bank's shares for a couple of reasons this week.
The first is of course the COVID-19 vaccine news which has put a rocket under the S&P/ASX 200 Index (ASX: XJO).
The prospect of the pandemic ending sooner than expected has sparked optimism that the economic impact may not be as bad as feared.
In addition to this, the release of a better than expected first quarter update and a sharp reduction in COVID-19 loan deferrals has given its shares a boost.
Is it too late to invest?
One leading broker that believes it is too late to invest is Goldman Sachs.
This morning its analysts reiterated their sell rating and cut the price target on Commonwealth Bank's shares to $65.24.
Goldman Sachs believes its weak operational performance doesn't justify the premium the bank's shares trade at and sees better value elsewhere in the sector.
The broker explained: "Weak operational performance does not justify PER premium. While CBA's balance sheet is strong, with a sector leading capital and provisioning position, CBA's operational performance in 1Q21, particularly as it relates to costs, does not justify the 24% premium it is currently trading on versus peers (versus 15% 15-yr average). Coupled with our revised 12-month TP implying 6% downside, we remain Sell rated."
Which bank should you buy?
As of last week, Goldman Sachs' top pick was National Australia Bank Ltd (ASX: NAB). It had a conviction buy rating on the bank's shares. However, its price target stands at $21.18, which is now lower than the current NAB share price of $21.82.
The broker also has a buy rating on Westpac Banking Corp (ASX: WBC) shares, with a $19.60 price target. This compares to its last close price of $18.73.
