The Commonwealth Bank of Australia (ASX: CBA) share price has been a very positive performer on Thursday.
In late afternoon trade, the banking giant’s shares are up 1.4% to $101.00. This makes the CBA share price the best performer among the big four banks today.
CBA share price outperforms
The CBA share price is currently leading the way in the banking sector with its 1.4% gain.
As a comparison, the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is up 1.2%, the National Australia Bank Ltd (ASX: NAB) share price is up 0.8%, and the Westpac Banking Corp (ASX: WBC) share price is up 0.9%.
Investors have been buying the shares of the banks despite a warning from one of Australia’s leading brokers.
What is being said?
According to a note out of Morgan Stanley, its analysts have concerns with Australia’s rising household debt.
The broker believes that regulators may need to take macroprudential measures to slow the build-up of household debt relative to income.
In fact, it doesn’t just think Australia needs these measures, it believes they could be coming before the end of the year.
Morgan Stanley suspects this could involve putting limits on high debt-to-income and high loan-to-value ratio lending.
And if this were to occur, the broker feels it could cause a slowdown in loan growth for the big four banks.
CBA shares a sell
Morgan Stanley currently has a sell rating and $90.00 price target on the CBA share price. This implies potential downside of almost 11% at current levels.
It is also lukewarm on ANZ and NAB shares. Its analysts have neutral ratings and $28.00 and $27.90 price targets, respectively, on their shares.
The only big four bank the broker likes at present is Westpac. Yesterday it retained its overweight rating and $29.20 price target on the bank’s shares. Morgan Stanley is expecting Westpac to announce a share buyback in November.