Among the best performers on the ASX 200 index this year have been two of the biggest names in the Australian economy – Commonwealth Bank of Australia (ASX: CBA) and Telstra Group Ltd (ASX: TLS).
Since the start of the year, CBA shares have risen approximately 17%, whereas Telstra shares have climbed approximately 22%. Both figures don't include dividends paid over the first half of the year.
As a comparison, over the same period, the benchmark ASX 200 index has risen by around 4.5% before dividends.
While this is great news for shareholders, does it mean the rest of us have missed the boat with these two blue chips? Let's see what one broker is saying about the two giants.
Can CBA and Telstra shares keep rising?
Unfortunately, the team at Red Leaf Securities appears to believe that these two ASX 200 shares are now fully valued.
As a result, the broker has told The Bull that it rates them both as holds right now. Commenting on CBA shares, it said:
CBA remains a market leader with strong profitability and dividend stability. The company posted an unaudited cash net profit after tax of $2.6 billion in the third quarter of fiscal year 2025, up 6 per cent on the prior corresponding period. Operating income was up 1 per cent driven by lending volume growth and higher trading income.
However, potential superannuation tax changes, elevated valuations and slowing credit growth temper near-term upside. Investors may consider holding until more clarity on Federal Government policy emerges, or until the macroeconomic outlook improves for banks.
As for Telstra, the broker also believes that its shares are fully valued after rising strongly in 2025. It adds:
Telstra's 5G rollout and infrastructure upgrades support long term earnings. EBITDA of $4.2 billion in the first half of fiscal year 2025 was up 6 per cent on the prior corresponding period and net profit after tax of $1.1 billion grew 7.1 per cent. Telstra provides reliable dividends, making it suitable for income-focused portfolios. The fully franked interim dividend of 9.5 cents a share was up 5.6 per cent. The company recently re-affirmed underlying EBITDA guidance of between $8.5 billion and $8.7 billion for full year 2025.
However, short-term competitive and regulatory pressures persist. While not a high growth story, its stability supports a hold recommendation as investors await catalysts for a re-rating. The shares have risen from $4.06 on March 17 to trade at $4.885 on June 12.
