CBA has dragged the Banking Sector lower this month after disappointing the market last week, similarly, NHF was clobbered -11.6% yesterday following its earnings report, testing below last year’s $150m equity raise price in the process. The company missed earnings expectations by ~5% despite meeting the revenue line, margins were a touch soft. The stock had rallied into the result which we believe contributed to the bad day.
- We like CBA in the $90 region, or 10-12% lower – note it trades ex-dividend $2.10 fully franked tomorrow.
- We are neutral NHF around current levels believing the stock can easily slip another 8-10%.
MM only has an interest in CBA & NHF 8-10% lower
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Commonwealth Bank (CBA) v NIB Holdings (NHF)
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Commonwealth Bank (CBA) v NIB Holdings (NHF)
