Home / Sector / Bank Shares / Broker forecasts CBA share price to slide 15%

Broker forecasts CBA share price to slide 15%

One expert has tipped the banking giant's stock to slide below $92.

Posted by
Brooke Cooper
Brooke has been a Motley Fool contributor since early 2021. She holds a Bachelor of Communication with specialisations in journalism and international studies from Charles Sturt University. Brooke aims to inform and excite Aussies keen to grow their wealth by investing in ASX companies. When not writing or researching, you'll likely find Brooke gallivanting around South East Queensland.
Published
| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The CBA share price is in the green today following a strong session for New York-listed banking giants on Friday
  • But the ASX 200 giant's future might not be so bright
  • One broker has tipped the CBA share price to fall nearly 15%

Monday is shaping up to be a strong session for S&P/ASX 200 Index (ASX: XJO) banks, with giant Commonwealth Bank of Australia (ASX: CBA) among the gainers.

The sector's strong performance follows on from a similarly favourable Friday for Wall Street banks, driven by quarterly earnings from the United States' 'big four'.

However, the future could be less convincing for the Aussie institution, with one broker tipping CBA's stock to tumble close to 15%.

Right now, the CBA share price is $107.36. That's 0.81% higher than its previous close.

For comparison, the ASX 200 is up 0.66% right now while the S&P/ASX 200 Financial Index (ASX: XFJ) has gained 0.79%.

Let's take a closer look at what's going on with the banking giant today.

An unhappy man in a suit sits at his desk with his arms crossed staring at his laptop screen as the PointsBet share price falls

Image source: Getty Images

CBA share price gains despite bearish broker

The CBA share price is in the green on Monday after stock in the United States' 'big four banks' surged amid their quarterly earnings on Friday.

Shares in JPMorgan Chase & Co (NYSE: JPM), Bank of America Corp (NYSE: BAC), Wells Fargo & Co (NYSE: WFC), and Citigroup Inc (NYSE: C) gained between 1.7% to 3.3% in the final session of last week.

But, unfortunately, it's not all good news for ASX 200 banks today. The largest of the lot has reportedly been hit with a broker downgrade.

Jefferies has cut its outlook for CBA shares, slapping the stock with a $91.30 price target – a potential 14.8% downside, The Australian reports.

It comes after many of the New York-listed majors alluded to an upcoming recession in their latest earnings, putting aside extra cash to cushion the impact of a potential economic slowdown.

JPMorgan and Bank of America's earnings led the pack on Friday. The pair's quarterly profits lifted 6% and 1.4% respectively year-on-year to US$11 billion and US$7.1 billion.

Meanwhile, Wells Fargo's quarterly profit fell 50% to US$2.86 billion and that of Citigroup slumped 21% to US$2.5 billion.

Back home, the CBA share price is far from alone in the green on Monday. Here's how the remaining Aussie big four banks are performing in late morning trade:

  • Shares in National Australia Bank Ltd (ASX: NAB) are up 0.96% at $31.60
  • The Westpac Banking Corp (ASX: WBC) share price is gaining 0.84% to reach $23.96
  • ANZ Group Holdings Ltd (ASX: ANZ) stock is up 1.31%, trading at $24.81

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Bank Shares

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Bank Shares

Here's why this top broker is tipping 27% upside for ANZ shares

| James Mickleboro

The Silicon Valley Bank collapse has weighed heavily on ANZ's shares and could have created a buying opportunity.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Is the Westpac share price a buy below $22?

| Bernd Struben

Westpac’s net interest margins could benefit from any further rate hikes by the RBA.

Read more »

Person with thumbs down and a red sad face poster covering the face.
Bank Shares

Why did the Bank of Queensland share price just hit a multi-year low?

| Sebastian Bowen

Bank of Queensland shares just went backwards by nearly two years.

Read more »

A man sits uncomfortably at his laptop computer in an outdoor location at a table with trees in the background as he clutches the back of his neck with a wincing look on his face.
Bank Shares

ASX 200 bank shares punished again on US bank fallout

| Bernd Struben

Investors in ASX 200 bank shares are jittery in the wake of SVB’s financial implosion last week.

Read more »

Confident male executive dressed in a dark blue suit leans against a doorway with his arms crossed in the corporate office
Bank Shares

ASX 200 bank shares: Are they better prepared than Silicon Valley Bank?

| Mitchell Lawler

How ready are our banks for a real life stress test?

Read more »

three reasons to buy asx shares represented by man in red jumper holding up three fingers
Bank Shares

3 reasons the 8% NAB dividend yield looks safe to me

| Tristan Harrison

The bank could keep paying a very good dividend.

Read more »

a small girl empties a piggy bank of coins onto a table while her mother looks on in the background.
Bank Shares

Here's how much I'd need to invest in Westpac shares to generate a $150 monthly income

| Sebastian Bowen

Here's how much income you can get from Westpac shares right now.

Read more »

a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.
Bank Shares

Why are ASX 200 bank shares like CBA being annihilated today?

| James Mickleboro

It has not been a great day to be invested in the banking sector.

Read more »