Here’s what Bell Potter thinks of the Westpac (ASX:WBC) share price

Time to buy Westpac shares or should you wait?
The post Here’s what Bell Potter thinks of the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia. –

The Westpac Banking Corp (ASX: WBC) share price has had a difficult two months.

Since the start of November, the banking giant’s shares have fallen 18%.

This compares unfavourably to a small gain by the S&P/ASX 200 Index (ASX: XJO) over the same period.

Why is the Westpac share price underperforming?

Investors have been selling down the Westpac share price over the last couple of months due to its full year results.

Although Australia’s oldest bank delivered strong profit growth, its margin outlook spooked the market. This is being caused by aggressive competition in the home loans market, which is weighing on margins.

In addition to this, doubts over the company’s ability to reduce its cost base to $8 billion in FY 2024 have been weighing on the Westpac share price.

Is this a buying opportunity?

While there are a number of brokers out there that are positive, such as Morgans (as discussed here), not everyone sees the weakness in the Westpac share price as a buying opportunity.

The team at Bell Potter, for example, appear to believe investors should sit tight for the time being.

Following its annual general meeting last week, its analysts reiterated their hold rating and $22.00 price target on the bank’s shares.

Bell Potter commented: “It seems it was another year of transformation prior to getting back to sustainable profit growth. While profit increased mainly due to an easing off in COVID-19 issues, there is still a lot of work to be done in driving change – specifically in terms of Fix, Simplify and Perform.”

“We note much of the year has already been spent on Fix (risk management, customer remediation and putting to bed regulatory investigations) and Simplify programs (business exits, closed products and streamlined fees), while Perform is now the main attraction (strengthen franchise, improve returns and lower costs). However, these changes still soak up time and money,” it added.

All in all, the broker appears to believe investors should wait to see how these initiatives go before considering an investment.

The post Here’s what Bell Potter thinks of the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Westpac right now?

Before you consider Westpac, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Westpac wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

The final Westpac (ASX:WBC) dividend is being paid today. Here’s what you need to know

5 things to watch on the ASX 200 on Tuesday

Westpac (ASX:WBC) share price falls despite asset sale announcement

Top brokers name 3 ASX shares to buy next week

Is it a buy? Here’s what Macquarie is saying about the Westpac (ASX:WBC) share price

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!