23/04/2024 09:04

Commonwealth Bank (CBA) $112.88

CBA has been the cream of the local Banking Sector for decades, and we still like the bank's risk/reward around $110 after its 9.6% pullback. We have even considered buying CBA in recent sessions, looking to exit ANZ after its May dividend – negating the risks around its Suncorp (SUN) integration.

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27/03/2024 09:15

First Up

As the market slips into the Easter long weekend, some profit-taking felt evident on Tuesday, no great surprise considering the index has rallied over 15% from its November low. The afternoon selling wasn’t overly aggressive, but as we touched on yesterday morning, the markets are a touch bullish and long; hence, some book-squaring/selling by the weak longs didn’t encounter any significant resistance. One of the main themes of 2024 to date has been the strong getting stronger and often the weak getting weaker, even as the ASX200 forged to fresh all-time highs. A quick glance at some sectors three months into the year tells the tale: remember, the index is up a healthy +2.5%.

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15/03/2024 09:16

Commonwealth Bank (CBA) $116.22

CBA is often referred to as the most expensive bank in the world, but ever since it floated at $5.40 in 1991, the company has yet to do anything to warrant losing this tag. It is definitely not cheap, but when we combine a fully franked yield of almost 4% with the stability of Australia’s largest bank, it's hard to imagine aggressive selling following Macquarie’s note, especially considering the tax ramifications for many with the stock around its all-time high.

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14/02/2024 17:05

Commonwealth Bank (CBA) $114.07

CBA -1.66%: Was lower today although it was largely inline with the rest of the banking sector. We covered the numbers first up this morning here, concluding that it was a strong result, but it needed to be.  

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14/02/2024 09:12

Commonwealth Bank (CBA) $116.00

The Active Income Portfolio holds a 6% initial weighting, which has crept higher with capital gains, and while we consistently question the position,  holding CBA as a core income stock has typically been a good decision over time. There is no doubt many subscribers would agree. Their ability to drive consistently higher returns than their peers is quite phenomenal, producing a Return on Equity (ROE) 3.5% higher consistently since 2018! While we never say never at MM, we view CBA as a core holding in our more defensively set income-focused portfolio despite its premium valuation.

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19/01/2024 09:04

Commonwealth Bank (CBA) $112.48

CBA made a fresh all-time high this week, an impressive advance in a weak market. The stock is up +0.5% this month, but it feels fully valued as it edges towards $120. We prefer ANZ Bank (ANZ) and National Australia Bank (NAB) and are comfortable adopting an underweight stance to the “Big Four”.

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14/11/2023 16:51

Commonwealth Bank (CBA) $102.28

CBA +0.96%: 1Q numbers out for the biggest of the Big 4, CBA shows it remains the quality pick of the banks with a strong start to FY24. Cash NPAT of $2.5b was around a 3% beat to consensus expectations championed by what looks like better-than-expected Net Interest Margins (NIM) despite some upward pressure on deposit pricing.

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04/10/2023 09:35

Banks

We met with UBS banking analyst John Story yesterday to discuss the environment for banks, and his specific calls in the sector. John is a very good analyst and income investors (MM’s Income Portfolio included) generally have a large exposure to banks either through bank equity or bank hybrid securities or bonds.

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25/08/2023 09:33

Commonwealth Bank (CBA) $100.61

CBA has now been trading around $100 since mid-2021 making it a solid fit in our lower risk Income Portfolio but not necessarily the optimum holding for our Growth Portfolio – remember MM runs real-life portfolios and cannot hold all the stocks we like. The market rallied slightly after this month's solid result which showed Net interest margins (NIM) up 17 points to 2.07% but the stocks now understandably trading a touch lower after paying a $2.40 fully franked dividend on the 16th.

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09/08/2023 09:25

Commonwealth Bank (CBA) $104.85

Australia’s 2nd largest company (behind BHP) released FY23 results this morning that were a modest beat to expectations as margins improved 17bps to 2.07%, ahead of the 2.05% consensus expectations.  Operating income of $27.24bn was up 13% while cash earnings of $10.164bn increased 6% and were in line with $10.17bn forecast.

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