CBA - Morgan Stanley rates the stock as Underweight
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The broker has had a closer look at CBA's result, leading to a slight increase in forecasts and a lift in target to $72 from $71.
Underweight retained on a modest earnings growth outlook, falling return on equity and a full valuation. The broker also sees slowing home loan growth, downside to margins, ongoing conduct concerns, reduced earnings on asset sales and strategic uncertainty. CBA is the least preferred of the Big Four.
Industry view: In line.
Target price is $72.00.Current Price is $76.51. Difference: ($4.51) - (brackets indicate current price is over target). If CBA meets the Morgan Stanley target it will return approximately -6% (excluding dividends, fees and charges - negative figures indicate an expected loss).
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