Commonwealth Financial institution of Australia (ASX: CBA) shares have simply ended the week within the pink.

The banking large’s shares dropped 0.5% to $92.59 on Friday.

Why did CBA shares have a subdued day?

Right now’s subdued displaying by the CBA share value might have been pushed by a dealer word out of Morgan Stanley yesterday.

That word reveals that the dealer believes traders shouldn’t be getting their hopes up for one more share buyback anytime quickly.

In accordance with the word, the dealer believes that CBA and the remainder of the large 4 banks have fewer capital administration choices than they did a yr in the past now that common capital ratios are solely a contact above pre-pandemic ranges.

Moreover, with charges rising quick to fight inflation and probably inflicting a recession, its analysts really feel the present surroundings could also be too unsure to danger additional buybacks.

The dealer commented:

The main banks have introduced $18 billion of buybacks for the reason that center of final yr. Nevertheless, given a extra unsure working outlook, we don’t count on any additional buybacks to be introduced this yr.

Shares stay a promote

It’s partly because of this that the dealer doesn’t see worth in CBA shares on the present stage. The word reveals that its analysts have an underweight score and $79.00 value goal on its shares.

Based mostly on the present CBA share value, this suggests potential draw back of 14.7% for traders over the following 12 months.

The one massive 4 financial institution the dealer is recommending as a purchase is Westpac Banking Corp (ASX: WBC).

Its analysts at present have an obese score and $22.30 value goal on its shares. This implies potential upside of 12% for traders from present ranges.