CBA stock: Morgan Stanley keeps Sell rating for Commonwealth Bank stock at AUD 125.00

Published on 10/21/2026 at 15:40 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Cash profit rose 7 percent to AUD 11.00 billion on October 14, 2026. CBA stock costs EUR 98.17 on October 21, 2026 versus EUR 98.42 at Tradegate.

Analyst target and earnings

Morgan Stanley maintained a Sell rating and set an AUD 125.00 target on October 19, 2026.
Fiscal 2026 cash net profit after tax rose 7 percent to AUD 11.00 billion on October 14, 2026.
CBA stock cost EUR 98.17 at Lang & Schwarz on October 21, 2026, versus EUR 98.42 at Tradegate.

CBA, AU000000CBA7, Illustration mit AI erstellt.

Commonwealth Bank of Australia (AU000000CBA7) is facing a fresh valuation test after Markets Insider reported on October 19, 2026 that Morgan Stanley maintained its Sell rating and set an AUD 125.00 price target. The euro quote was EUR 98.17 at Lang & Schwarz on October 21, 2026 at 3:31 p.m. CEST.

Profit growth supports the dividend

Commonwealth Bank reported that cash net profit after tax increased 7 percent to AUD 11.00 billion in fiscal year 2026. The bank also lifted cash earnings per share by AUD 0.44 and declared a fully franked final dividend of AUD 2.70, taking the full-year dividend to AUD 5.05 per share, according to Commonwealth Bank on October 14, 2026.

ASX valuation stays elevated

The ASX quote was AUD 157.01 at 4:19 p.m. AEDT on October 21, 2026, up 0.91 percent from the prior close of AUD 155.60. The 52-week range was AUD 146.98 to AUD 185.59, while market capitalization stood at AUD 262.5 billion.

At a price-to-earnings ratio of 24.16, CBA remained above the valuation multiples of two large Australian banking peers. ANZ Group Holdings traded at a P/E of 20.01 with a market capitalization of AUD 118.2 billion, while National Australia Bank traded at 20.80 times earnings with a market value of AUD 124.2 billion on October 21, 2026.

What does the target imply?

Morgan Stanley's AUD 125.00 target is AUD 32.01 below the ASX quote of AUD 157.01. Its Sell view therefore places more weight on valuation than on the 7 percent fiscal 2026 profit increase. The bank's own October 14 address also said growth was slowing and inflation remained elevated, while it entered fiscal year 2027 from a position of strength.

Comparison with peers

Commonwealth Bank of Australia: up 0.91 percent on ASX, P/E 24.16, market capitalization AUD 262.5 billion.

ANZ Group Holdings: up 0.62 percent on ASX, P/E 20.01, market capitalization AUD 118.2 billion.

National Australia Bank: up 1.86 percent on ASX, P/E 20.80, market capitalization AUD 124.2 billion.

Stock position in Germany

For investors using German venues, the Tradegate quote was EUR 98.42 at 10:04 a.m. CEST on October 21, 2026. The Lang & Schwarz quote stood at EUR 98.17 at 3:31 p.m. CEST on the same date.

The further course of trading is shown by the continuously updated real-time quote of CBA stock.