Commonwealth Bank of Australia's 1H profit was a 12% and 10% beat versus Morgans and the consensus forecast, due to strong revenue and a credit loss provision release. A fully franked interim dividend of $1.75/share was announced.

The broker expects further net interest margin headwinds (only until 1H23) after management expects the fixed rate share of the Australian home loan book to increase further and peak in the 2H22. 

Morgans increases EPS forecasts and raises its target to $77 from $74, while retaining its Reduce rating.
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Sector: Banks.

Target price is $77.00.Current Price is $99.56. Difference: ($22.56) - (brackets indicate current price is over target). If CBA meets the Morgans target it will return approximately -29% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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