Analysts are getting more and more bearish on the banks, at the AFR comes Morgan Stanley with $65 target on CBA:
Scenario one would be mildly bearish for CBA stock but is also the most likely in Morgan Stanley’s view, with the broker assigning a 50 per cent probability to the mildly negative outcome where the shares could fall 4 per cent to $68.75.
The scenario assumes that the inquiry recommends a focus on responsible lending, higher compliance spending, requires the removal of excess fees and imposes modest fines along with modest customer remediation.
