Thoughts on the “Big 4 banks” please
Hi, a question for Saturday,
Thank you.
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Answer
Hi Cameron,
We remain long and mildly bullish CBA targeting fresh all-time highs into Christmas/2023, however this is far from a big call as the stocks currently less than 2% below this milestone ($110.19). MM might reduce its exposure into fresh highs in the $110-115 area but for now with December looming it looks good.
In terms of other brokers downgrading it on relative valuation levels its very understandable with the likes of ANZ and NAB screening far cheaper but for now it remains solid and MM is unlikely to be selling/switching in the short term although we are monitoring relative price differentials very closely. Analysts are almost always wrong on CBA in our opinion because they operate on relativities – and it’s always relatively expensive. Today there are 10 sells, 6 holds and no buys on CBA with a $94.20 consensus price target.
