If we are correct and the ASX is going to test/make new highs in 2026, a call many find it hard to imagine, CBA will likely come along for the ride. Australia’s largest bank delivered a strong 1H result in February Here which saw the stock surge ~12% in 2-days, a huge move for such a stock let alone bank of its size. CBA beat consensus on cash profit and lifted the interim dividend, with volume growth and improving credit quality offsetting margin pressure and higher costs. The stock’s “drift” lower in March demonstrates that investors are hesitant to reduce their position in the bank, even during a war.
NB We prefer ANZ Group and Westpac in the sector, but CBA isn’t far behind.
- We like CBA around $172 initially targeting the $190 area, or 10% higher
MM is bullish towards CBA around $172
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