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Thoughts on commonwealth bank (CBA)

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Question asked 07/06/2025

Thoughts on commonwealth bank (CBA)

Hi MM I've been a member for a number of years now and have enjoyed the market coverage you provide and the different portfolios that members have access to in real time. I have found this hugely beneficial. My question is around CBA; I have been slowly setting up my portfolios to mirror those at MM and when I initially invested in CBA for my income portfolio, I only had a 1% weighting vs MMs 5% weighting. I can see in the Income Portfolio on the MM website that it shows CBA is still considered 'Active' even though the current price is $180.46 vs $61.33 at the time MM purchased the CBA shares. I realise you can't provide individual advice, so I am just seeking MMs thoughts as to where CBA is headed? The last update from MM was on 20 May 2025 "We can see CBA testing $180 in 2025, but the outperformance feels stretched". As CBA hit a new all time high today of $181.39, is MM still long and bullish? Thanks SB

Answer

Hi SB,

Similar questions are being asked by many investors as CBA punches through the $300bn barrier. We actually touched on CBA in our Thursday Morning Report, saying;

“If certainty in an uncertain world is the playbook, we totally get why CBA attracts the capital.”

Our “best guess” at this stage is CBA will rotate/consolidate in the $150-$200 area over the next 6-12 months after enjoying a phenomenal run. That implies more downside than upside. Hence, we are nearer a sell on CBA than a buy and given the strong run up in price, checking actual weightings is important. Trimming back to target weight (5%) is our preferred strategy for now, though we are considering a full exit, but that’s unlikely before June 30.

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Commonwealth Bank of Australia (CBA)

LAST UPDATED 05/06/2025 14:02

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