CBA keeps on marching as the “Certainty Trade” holds firm. Its hard to get excited on CBA when its looks so expensive on every metric one can consider until we take into account its operational execution and ongoing delivery for investors. We’ve been saying it all year, MM expects CBA to hit $200 before $100, although that’s hardly a big call now. CBA may be the most expensive bank in the world, but it is so for a reason. CBA has been the market’s go-too bank and stock over the last 18 months, but with the stock trading almost 50% above its 5-year average valuation, we believe it’s time to slowly temper enthusiasm as the valuation elastic band continues to stretch.
- We remain positive on CBA, though the valuation does not stack up: MM is long CBA in our Active Income Portfolio.
MM remains positive on CBA, though at $184, it’s very stretched
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