CBA TA update, page-32

Hilarious to see Morgan's take on the 3Q21 report yesterday.

1. Acknowledged both interest income and non-interest income was better than expected.
2. Believes CBA is being "too conservative in provisioning of impairments" ie. understating profits.
3. Acknowledged Profit before provisioning to be 5% above consensus for 3Q21.
4. Forecast a share buyback in 12 months due to a very strong capital position.
5. Surprised that Net Interest Margin (NIM) rose in 3Q21.

Meanwhile they raise their Target Price by only 1.4% to $73.00 and maintain their Reduce recommendation. The broker's record on CBA is appalling, the CBA turnaround is well underway and Morgans retain their implacable position and attempt to justify it on the basis that CBA is "quality but overvalued". All the while they advise investing in the laggard major banks who have serially underperformed CBA over decades. I'd describe the Morgan's banking analysts themselves as "inferior quality and overvalued".