Own CBA shares? This expert says you 'may want to consider cashing in some gains'

This expert is telling investors to trim their CBA holdings.

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Key points

  • CBA is one of the most popular ASX shares on the market
  • CommBank is also the largest of the big four banks
  • But this expert reckons it's time to start some pruning...

Alongside the S&P/ASX 200 Index (ASX: XJO), the Commonwealth Bank of Australia (ASX: CBA) share price is having a cracker of a Monday so far this session. At present, CBA shares have gained a solid 1.28%, putting the largest ASX bank back over $100 a share.

That's not quite as enthusiastic as the gains of the broader market at 1.7%. But it's certainly not a move to turn one's nose up at. CommBank shares are now up a robust 7.3% over the past month. However, CBA is pretty flat over the year to date, having notched up a loss of around 2% since the start of the year.

So what should investors do with their shares today, considering all of this?

Well, one expert reckons it might be time to do some pruning.

ASX expert says CBA is a sell

Jabin Hallihan, from ASX broker Morgans, recently penned some recommendations in an article for The Bull. He told investors that it might be time to consider doing some selling if they owned Commonwealth Bank shares.

CBA was amongst the ASX shares that Hallihan rated as a sell.

Here's some of what he had to say on the banking giant:

On financial metrics, we believe the CBA is expensive compared to local and international peers. The share price was partially driven higher by an on-market buy-back. Our 12-month price target is $77. Investors may want to consider cashing in some gains.

Unfortunately for investors, many ASX brokers share similar sentiments. Perhaps the most positive right now is JP Morgan. As my Fool colleague Monica covered earlier this month, JP Morgan has a neutral rating on CBA shares. It commented that:

….we struggle to see CBA underperforming peers meaningfully as it offers the best leverage to rising rates and has the most defensive loan book, in our view.

However, it still views CBA as its least preferred major bank share.

Morgan Stanley is less excited again. It currently has a 12-month share price target of just $85.50.

Perhaps not what investors want to hear right now. But we shall see who's right in time.

At present, the current CBA share price gives this ASX banking giant a market capitalisation of around $170 billion, with a dividend yield of 3.83%.

Motley Fool contributor Sebastian Bowen 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.

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