Commonwealth Bank (CBA) Stock Recommendation

Commonwealth Bank (CBA) has a Neutral 1 stock recommendation and a $47 share price target and valuation from investment banker and stock analyst UBS. CBA released a first quarter update today in the lead up to other banks releasing their reports starting this Thursday. The stock analysts note that today's update was Commonwealth Bank's first attempt at a quarterly trading statement and there was a lack of financial data which limits the reports' usefulness. Credit growth seemed to be holding up to the two rate hikes. UBS notes that they are becoming "incrementally positive on the stock" and see the following as positives:

(1) register short squeeze, most under-held bank (2) stabilisation in market shares (3) working through 07 captial expenditure hole via investment in 06 (4) recent mgmt re-jig. Issues: (1) unlikely to achieve lead status in retail bank satisfaction by 08 (2) culture change is LT (3) most susceptible to retail competitive pressures. Our price target is derived from a combination of DCF, SOP and international peers.

Commonwealth Bank of Australia Limited is listed on the Australian Stock Exchange (ASX) under stock code CBA. You can view their investor website here. CBA was listed on the ASX on 12 September, 1991. CommBank is involved in banking, financial and related services. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can check previous Commonwealth Bank (CBA) News and Recommendations. CBA is one of the stock on Marco's CFD hit list. Check your charts and good luck with your share trading!