Commonwealth Bank Looks Most Vulnerable to Housing Downturn -- Market Talk

Dow Jones

Jun 10

0158 GMT - Commonwealth Bank's stretched multiples leave it more exposed to a slowing housing market than its Australian banking peers, Citi analyst Thomas Strong says. He tells clients in a note that changes to the tax system add to what is already an unfavorable stagflation outlook for major lenders, which are contending with elevated interest rates, slowing growth and rising credit risk. With bank shares having already pulled back, Strong makes no changes to his ratings of the big four banks but cuts his target prices by between 1.7% and 3.8%. Commonwealth, which is the country's largest bank, has a sell rating and is Strong's least-favored pick. Citi cuts its target price on CBA by 3.6% to A$135.00. Shares are up 0.1% at A$160.70. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 09, 2026 21:58 ET (01:58 GMT)

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He tells clients in a note that changes to the tax system add to what is already an unfavorable stagflation outlook for major lenders, which are contending with elevated interest rates, slowing growth and rising credit risk. With bank shares having already pulled back, Strong makes no changes to his ratings of the big four banks but cuts his target prices by between 1.7% and 3.8%. Commonwealth, which is the country's largest bank, has a sell rating and is Strong's least-favored pick. Citi cuts its target price on CBA by 3.6% to A$135.00. Shares are up 0.1% at A$160.70. 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He tells clients in a note that changes to the tax system add to what is already an unfavorable stagflation outlook for major lenders, which are contending with elevated interest rates, slowing growth and rising credit risk. With bank shares having already pulled back, Strong makes no changes to his ratings of the big four banks but cuts his target prices by between 1.7% and 3.8%. Commonwealth, which is the country's largest bank, has a sell rating and is Strong's least-favored pick. Citi cuts its target price on CBA by 3.6% to A$135.00. Shares are up 0.1% at A$160.70. 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