What’s happening with the CBA (ASX:CBA) share price this week?

The government is scrutinising superannuation providers.

| More on:
Young boy wearing suit and glasses adds up on calculator with coins on table

Image source: Getty Images

The Commonwealth Bank of Australia (ASX: CBA) share price is edging lower in early afternoon trade, down 0.53% to $104.39 per share.

If shares close in the red today, that will mark 3 days of losses and 2 of gains for the big 4 bank this week. Fortunately for shareholders, the gains outstrip the losses leaving the CBA share price up 2.43% for the week, at time of writing.

Here’s why the bank was in the news this week.

What’s been happening with the CBA share price this week?

The CBA share price closed up 1.6% on Monday. That was the day CommBank announced its funds management division, Colonial First State (CFS), was going to team up with global asset manager, Blackrock.

As The Motley Fool reported, “The partnership with Blackrock relates to the ‘FirstChoice Lifestage’ portfolios. This is for CFS’ MySuper products, FirstChoice Employer Super and Commonwealth Essential Super.”

Commenting on the rationale behind the partnership, CFS said:

Partnering with BlackRock and utilising their global scale and international investment skills, technology capabilities and consistent track record of delivering competitive returns, will allow us to improve the performance of our MySuper products more quickly.

What to expect from the CBA’s quarterly results?

On Tuesday, my Foolish colleague James Mickleboro, analysed a broker note from Bell Potter, reporting that its analysts expect a “decent” performance from the bank’s Q1 FY22 results, due out next month.

And Bell Potter remains bullish on the bank’s outlook for the full 2022 financial year. The analysts forecast a full year cash profit of $9.5 billion, a year-on-year increase of 9.6%, along with a 16% boost in the FY22 dividend.

Bell Potter also forecasts a big lift in the CBA share price, with a price target of $118 per share.

But not all analysts are equally optimistic about the bank’s value.

Mickleboro noted that, “One of the most bearish brokers is Morgans. According to a recent note, its analysts have a reduce rating and $80.00 price target on the shares of Australia’s largest bank.”

If Morgans is right, that implies the CBA share price could fall by some 24% over the next 12 months.

CBA share price snapshot

The CBA share price has been an outperformer in 2021, up 25%. That’s more than twice the 11% year-to-date gains posted by S&P/ASX 200 Index (ASX: XJO).

Over the past month CBA shares are up 5%.

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 nearly 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 August 16th 2021

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 Bruce Jackson.

More on Bank Shares