In morning trade the Commonwealth Bank of Australia (ASX: CBA) share price has started the week on a disappointing note and has dropped into the red.
At the time of writing the banking giant's shares are down 0.5% to $72.00.
Why is the CBA share price in the red today?
Investors have been hitting the sell button this morning following the release of a broker note out of the Macquarie equities desk.
According to the note, the broker has downgraded the bank's shares from a neutral rating to underperform. Macquarie has held firm with its price target of $69.00, which implies potential downside of 4% from the current share price.
Macquarie believes the banking sector is an attractive option for investors due to current valuations and the above-average dividend yields on offer.
However, it does have concerns over the challenging trading conditions in the sector and doesn't appear convinced that much will change in the short term.
Elsewhere, late last month the broker downgraded Australia and New Zealand Banking Group (ASX: ANZ) shares to a neutral rating from outperform for similar reasons. It currently has a $27.50 price target on ANZ's shares.
Macquarie also has the same rating on the shares of National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC).
Should you buy CBA's shares?
Whilst I wouldn't be a seller of the banking giant's shares if I already owned them, I wouldn't be a buyer just yet as I do see more value in its peers at present.
ANZ and NAB remain my favourites due to their attractive valuations, exposure to a solid performing commercial lending market, and their generous dividend yields.
ANZ's shares currently offer investors a trailing fully franked 6.1% dividend and NAB's shares now offer a trailing fully franked 7.8% dividend.
