Commonwealth Bank of Australia (ASX: CBA) shares have been out of form recently.
So much so, the big four bank's shares are down 18% from their 52-week high.
Is this a buying opportunity for investors? Let's see what analysts think a $10,000 investment in its shares could become in 12 months.
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Investing $10,000 in CBA shares
With the bank's shares ending last week at $157.30, this means that with $10,000 (and an extra $67.20), investors could pick up 64 units.
But would that be a good investment? Well, unfortunately the broker community doesn't think it would be.
In fact, all the major brokers currently have the equivalent of a sell rating on CBA's shares with price targets predicting potential downside of 9% to 39% over the next 12 months.
One of the most bearish brokers out there is Morgans. In response to the bank's quarterly update, its analysts have retained their sell rating with a reduced price target of $96.07.
If CBA's shares were to fall to that level, those 64 units would have a market value of just $6,148.48. That's a loss on investment of almost $4,000, excluding dividends.
Commenting on its bearish view of the stock, the broker said:
Revenue growth was outpaced by cost growth and loan impairment charges. The net result was c.1% profit growth, which is less than the 1.7% benefit from 1.5 additional days in the period (and that was with the benefit of seasonally low IT vendor spend which continues to rise). While the market wasn't expecting much earnings growth (c.2% for 1H26, and we were more bullish than consensus), growth was weaker than these expectations.
The market's response to a mild earnings miss for a stock priced for perpetual perfection was today's sharp share price decline. WBC seemed to be a beneficiary. We've downgraded FY26-28F EPS and DPS by c.3%. Lower earnings also reduces terminal ROTE and sustainable growth in our DCF valuation. DCF-based target price declines to $96.07/sh. We remain SELL rated on CBA, recommending clients aggressively reduce overweight positions given the risk of poor future investment returns arising from the even-now overvalued share price and low-to-mid single digit EPS/DPS growth outlook.
Overall, while CBA shares have been a great investment in recent years, the tide could now be turning. This could mean that investors may be better off looking elsewhere for new portfolio additions.
