CBAUF - Commonwealth Bank of Australia: Consider Potential De-Rating Catalysts And Peer Comparison
2024-04-15 05:19:28 ET
Summary
- Potential de-rating catalysts for Commonwealth Bank of Australia include stiff mortgage market competition affecting the bank's profitability, and a strong recovery in China's economy leading to fund outflows from Australian stocks.
- CBA's valuation premium over peers is substantial, making it a much less attractive pick within the Australian banking sector.
- I stick to my existing Sell rating for CBA, taking into account the presence of unfavorable catalysts and the results of the peer comparison exercise.
Elevator Pitch
Commonwealth Bank of Australia ( OTCPK:CBAUF ) ( OTCPK:CMWAY ) [CBA:AU], which I will be referring to as CBA in this write-up, is rated as a Sell....
Commonwealth Bank of Australia: Consider Potential De-Rating Catalysts And Peer Comparison