Broker UBS thinks CBA shares are a sell after the lender posted a 5 per cent fall in cash profit to $2.4 billion for the March quarter, versus the prior comparable quarter in March 2023.
“Despite a visible deterioration in asset quality metrics, we think the credit impairment charges today suggest some consensus upgrades are likely for 2H 24 cash earnings,” UBS said.
“CBA continues to lean on its proprietary distribution channels to defend and drive volume growth in mortgages – a strategy which has so far seen CBA grow at 0.7x system. Defending back-book profitability remains a key imperative for management.”
UBS values the stock at $105, versus the last market price of $119.74.
