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. Our preferred scenario is the stock edges back towards $110 over the coming weeks before attracting some buyers.
- We can see CBA rotating between $111 and $121 before again pushing higher – MM holds CBA in our Active Income portfolio.
MM remains long and bullish CBA
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