Commonwealth Bank Of Australia
Recommendation
Commonwealth Bank of Australia -
CBA
Current price
$120.34 at 16:35 (29 March 2024)
Price at review
$30.06 at (13 June 2003)
All Prices are in AUD ($)
The Commonwealth Bank has been one of the laggards of the banking sector this year. So how does management plan to rectify this? Easy, it resorts to 'Banking 101' and hires a bunch of consultants to come in and sack staff. The rocket scientists at McKinsey & Co have been hired to advise who stays and who goes. The Commonwealth is aiming to achieve annual cost savings of $500m, which seems a bit of a stretch considering all the other transformations, repositioning, and whatever else you want to call them that the banks have conducted in recent years. The stock is up 2% since issue 129/Jun 03 (Long Term Buy - $29.50) and the Commonwealth remains a strong generator of profits and dividends. It remains a LONG TERM BUY.
IMPORTANT: Intelligent Investor is published by InvestSMART Financial Services Pty Limited AFSL 226435 (Licensee). Information is general financial product advice. You should consider your own personal objectives, financial situation and needs before making any investment decision and review the Product Disclosure Statement. InvestSMART Funds Management Limited (RE) is the responsible entity of various managed investment schemes and is a related party of the Licensee. The RE may own, buy or sell the shares suggested in this article simultaneous with, or following the release of this article. Any such transaction could affect the price of the share. All indications of performance returns are historical and cannot be relied upon as an indicator for future performance.
Recommendation
Commonwealth Bank of Australia -
CBA
Current price
$120.34 at 16:35 (29 March 2024)
Price at review
$30.06 at (13 June 2003)
All Prices are in AUD ($)
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