The Commonwealth Bank of Australia (ASX: CBA) share price has been contending with the $100 mark for the last couple of months.
Yesterday, the banking giant’s shares reclaimed the century price tag. Though, the latest broker notes indicate the triumph may be brief for CBA investors.
What brokers are saying about the CBA share price?
Despite blazing a 45% share price gain over the past year, some analysts aren’t looking favourably on CBA.
According to a recent note, Morgan Stanley analysts have retained their underweight rating and price target for this banking giant’s shares. The broker’s price target represents roughly a 12% indicative downside to the current CBA share price.
The broker expects a solid result from Australia’s largest bank later this month, but it has concerns over the current lockdowns, with outlook commentary potentially shaky at best.
Additionally, Morgan Stanley considers CBA to be expensive with it trading on a price-to-earnings ratio (P/E) of 27.1. Whereas the average P/E ratio for Australian banks is around 15.7. Analysts from the investment bank suggest investors look elsewhere for ‘value’.
Earnings just around the corner
The CBA share price will come into focus next week as the company gets set to report its FY21 results. The big four bank will release its full-year financials on Wednesday 11 August.