Commonwealth Bank of Australia (ASX: CBA) shares are up 0.9% in early trading.
The CBA share price closed yesterday at $102.42 and currently stands at $103.31.
That's today's price action for you.
Now, here's what's been putting the big bank in the headlines this week.
CBA shares… buy, sell, hold?
Here at The Motley Fool, we covered two competing views on the medium-term outlook for CBA shares this week.
On the sell side are analysts who point out Australia's biggest bank is trading at a significant premium to its peers. Indeed, CommBank trades at a price-to-earnings (P/E) ratio of 18.8 times.
Jabin Hallihan, investment adviser at Morgans, counts among the bearish analysts.
"On financial metrics, we believe CBA is expensive compared to local and international peers," Hallihan said.
He indicated that the CBA on-market share buyback had helped drive the stock higher. "Investors may want to consider cashing in some gains," he said.
Morgans has a 12-month price target of $77 on CBA shares, some 25% below the current price.
But not everyone has a negative outlook for CBA shares.
With interest rates ratcheting higher for the first time in over a decade, a number of analysts believe CommBank is best placed to benefit from an increase in net interest margins.
Paul Taylor, head of investments at Fidelity International, said CommBank "benefits the most from rising interest rates, steepening yield curve and improved net interest margins given its very significant deposit base".
He added that Fidelity has "a significant over-weight position in Commonwealth Bank due to its strong balance sheet and superior technology platform".
What else happened during the week?
CBA shares also made the news this week for rolling out discounted 4G and 5G mobile SIM plans to its customers.
CommBank is teaming up with national network services provider More, offering its customers 30% off mobile SIM plans for the first 12 months.
And CBA made several headlines, including here and here, for its post Federal budget scrutiny. CommBank offered a far more bullish outlook for commodity prices – particularly iron ore and coal – than the budget has baked into its forecasts for 2023 and beyond.
How have CBA shares been tracking?
CBA shares are back in the green for 2022, up 1%. That compares to a year to date loss of 10% posted by the S&P/ASX 200 Index (ASX: XJO).
