SYDNEY: Commonwealth Bank of Australia’s (CBA) strong asset quality is expected to help the lender deliver marginal cash earnings growth in the first half, though analysts believe its lofty valuation seems untenable amid rising macroeconomic headwinds.
Shares in CBA, Australia’s biggest bank, have soared nearly 70% since November 2023 when the central bank lifted interest rates to a 12-year-high, propelling the stock to trade at more than 26 times its future earnings with a 4.1% dividend yield.
