If you are searching for ASX bank shares to buy, then read on.
That's because analysts have named one to buy and two to sell this week, courtesy of The Bull.
Here's what they are recommending:
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Commonwealth Bank of Australia (ASX: CBA)
Analysts at Morgans are bearish on CBA shares and have named them as a sell this week.
The broker has concerns over its valuation and believes there are better opportunities elsewhere. It said:
CBA is Australia's strongest major bank, with a leading retail franchise and consistent profitability. However, the market fully recognises these strengths. The shares were recently trading at a significant premium, leaving limited upside as interest rate benefits fade and competition increases. While the business remains high quality, future returns are likely to be more modest, in our view. With the company's valuation pricing in a lot of good news, we see better value elsewhere, supporting a sell view.
Westpac Banking Corp (ASX: WBC)
Morgans is also recommending Westpac shares as a sell this week.
While the broker has been pleased with its business simplification progress, it isn't enough to justify a more positive stance. This is especially the case given how growth drivers are limited in the current environment. It explains:
Westpac has made progress simplifying its business, but returns continue to lag peers. Growing revenue is a challenge in a competitive and mature banking market, while execution risk persists. Cost control and balance sheet strength offer some support, but growth drivers are limited in a slowing credit environment. The valuation doesn't offer a clear margin of safety given these challenges. Income may appeal to some investors.
Macquarie Group Ltd (ASX: MQG)
One ASX share that is in favour is investment bank Macquarie. MPC Markets has named it as a buy this week.
It likes the company due to its strong track record and potential to outperform in the volatile markets we are experiencing at present. It said:
This global financial services company operates in more than 30 markets. Businesses include asset management, banking and financial services and commodity and global markets. Its diversification appeals to investors, particularly in volatile markets.
The trading desk has been a driver of growth in previous years and we suspect it will feature prominently at the company's full year results due in May. The shares have surged from $191.53 on March 4 to trade at $229.95 on April 23. We believe the company's outlook is bright. The company's solid track record has stood the test of time.
