Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for Aussie investors.
This isn't a big surprise. Not only is its Australia's largest bank, but it is arguably the highest quality bank in the world.
But that doesn't mean you should pay any price to own its shares.
And with its shares up approximately 45% since this time last year and all major brokers tipping them as a sell, investors might be better off staying clear of them and focusing elsewhere in the sector.
But where?
One ASX bank stock that could be dirt cheap according to analysts at Ord Minnett is Judo Capital Holdings Ltd (ASX: JDO). Let's see what the broker is saying about it.
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What is Ord Minnett saying about this ASX banking stock?
Judo Capital is different to the big four banks. Instead of home loans, it focuses on lending to small and medium size enterprises.
At the last count, it had gross loans and advances of $11.7 billion and a term deposit balance of $9.2 billion.
However, a disappointing third quarter update earlier this month sent the ASX bank stock crashing deep into the red. So much so, its shares are down almost 20% since this time last month.
The team at Ord Minnett believes this has created a compelling buying opportunity for investors.
It has put a buy rating and $2.20 price target on its shares. Based on its current share price of $1.43, this implies potential upside of almost 54% for investors over the next 12 months.
To put that into context, a $10,000 investment would turn into over $15,000 by this time next year if the broker is on the money with its recommendation.
Commenting on the ASX bank stock, the broker told The Bull:
This Australian lender focuses on small and medium size enterprises. After subdued loan growth in the third quarter of fiscal year 2025, Judo now expects gross loans and advances of between $12.4 billion and $12.6 billion at June 30, 2025. In the second half of 2025, the company continues to target net interest margins of between 2.9 per cent and 3 per cent.
Noting the operating environment remains volatile, Judo continues to target profit before tax growth of 15 per cent in fiscal year 2025 when compared to the prior corresponding period. Assuming stable economic conditions, Judo is aiming for 50 per cent profit before tax growth in fiscal year 2026 in response to the bank benefiting from significant operating leverage.
Incidentally, Ord Minnett has a sell rating and $105.00 price target on CBA's shares. This implies potential downside of 40% for investors.
