Bulls & bears
Matt Comyn hasn’t convinced analysts just yet
Despite his best efforts and a big profit, the largest investment bank brokers are sceptical that Commonwealth Bank deserves its $194 billion valuation.
Lucas BairdReporterCommonwealth Bank may have just beaten its half-year earnings forecasts with $5 billion cash profit, but analysts remain deeply unconvinced the result is enough to justify the company’s current valuation.
Despite CBA chief executive Matt Comyn’s best efforts to rationalise the share price, brokers are looking at falling profit margins as competition on the deposit side outweighs efforts to write more profitable mortgages.
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