The Commonwealth Bank of Australia (ASX: CBA) share price topped the $100 mark in March but could it retreat lower in April?
CBA shares are currently trading at $104.09 apiece, a 0.36% gain. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is up 0.33% at the time of writing.
Let's take a look at the outlook for the bank.
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What might the future hold for CBA?
The CBA share price has surged 10% since market close on 4 March, hitting a monthly high of $107.45 on 23 March.
However, analysts at Macquarie Group Ltd (ASX: MQG) have recently named CBA as a share to sell. Macquarie retained an underperform rating on the company's shares with a $90 price target. That's nearly 14% less than the price at the time of writing.
Macquarie has concerns that upcoming updates from the banks could disappoint and impact their shares. My Foolish colleague James reported this is due to margin weakness caused by slowing volume growth and competitive pressures.
Meanwhile, Morgan Stanley also recently placed an underweight rating and $92 price target on CBA shares.
Morgan Stanley thinks CBA's shares are overvalued at the current price. Analysts are concerned any net interest margin boost from rate hikes could be partly offset by increasing funding costs. Intense mortgage competition and modestly higher loan losses could also impact the bank.
CBA announced an interim dividend of $1.75 per share in February. This was 17% more than the FY21 half-year dividend. Statutory net profit after tax soared 26% to $4.741 million in the first half of FY22.
CBA share price recap
The CBA share price has soared 21% in the past year while it is up 3% year to date.
In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 10% in the past year.
CBA has a market capitalisation of about $177.9 billion.
