Is the CBA share price heading back over $100?

Here's what experts are forecasting for the ASX 200 banking giant's stock.

Key points
  • The CBA share price tumbled below $100 last month and hasn't yet regained its lost ground
  • Right now, the stock is trading at $99.01 – less than 1% below the milestone
  • UBS has a $100 price target on the biggest of the big four, while Morgans tipped it to trade at $96.11 last month

The Commonwealth Bank of Australia (ASX: CBA) share price appears to have been caught up in what many have called a global banking crisis.

That saw it tumbling below $100 for the first time since October last year, hitting a 2023 low of $93.05 last month.

So, is the S&P/ASX 200 Index (ASX: XJO)'s biggest bank destined to sit below three figures for now, or is it gearing up to post a ripper recovery? Let's take a look.

A man in a suit smiles at the yellow piggy bank he holds in his hand.

Image source: Getty Images

Was the ASX 200 banking giant caught up in international drama?

The CBA share price hasn't traded over $100 since early March. In the meantime, the global banking sector has faced major disruptions.

United States-based Silvergate Bank kicked off a string of collapses last month, embroiling Silicon Valley Bank and Signature Bank as well. Not to mention, Credit Suisse appeared to be saved from the same fate by an acquisition agreement with Swiss peer UBS.

No doubt, all that shook some investors' confidence in the sector, thereby weighing on shares in the likes of CBA.

But experts remain divided on whether things could be about to turn around for the biggest of the big four banks.

Will the CBA share price surpass $100?

CBA shares currently trade with a 4.2% dividend yield, a 17.15 price-to-earnings (P/E) ratio, and a 2.31 price-to-book (P/B) ratio, according to CommSec.

That makes the stock the most expensive of its big four banking peers on a P/E and P/B basis. It also offers the lowest dividend yield of the lot.

But Fairmont Equities' Michael Gable believes the stock is worth the premium. The expert tips the bank to outperform over the long term due to its quality, as per The Bull.

Meanwhile, broker UBS has a $100 price target on CBA shares while Morgans expects the stock to slump to $96.11.

Personally, I think the CBA share price is likely to bounce into triple-digits in the near future. Indeed, it's less than 1% off the milestone figure right now.

However, only time will tell if the stock can both surpass $100 and remain there, over the long term.

Motley Fool contributor Brooke Cooper 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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