Analysts at Citi have expressed bearish sentiments on the shares of Commonwealth Bank of Australia (ASX:CBA), asserting that they are traded at a substantial premium compared to its counterparts and the broader market.

The shares of the Australia’s number one lender is presently A$104.850, compelling the brokerage house to keep its ‘sell’ rating on the bank and maintain a price target of A$82.50.

The Commonwealth Bank of Australia announced a record annual cash profit of A$10.16 billion on Wednesday, prompting an increase in shares by 2.6%.

Citi suggests that the first half of 2023 bore most of the burden, identifying signs of deterioration in the second half which the bank didn’t address in detail.

It predicts that the bank could venture into sub-system volume growth into the financial year 2024; the bank had recorded a 5.0% surge in home lending volumes in the financial year 2023 versus a 4.9% growth in the Australian banking system.

Out of 15 analysts, four recommend ‘hold’ for the bank’s stock while eleven suggest a ‘sell’, with a median price target of A$87.60, according to Refinitiv data.

The Commonwealth Bank of Australia is the largest lender in Australia.