Insights

Top broker sees 19% upside for the Westpac (ASX:WBC) share price

Here’s why this top broker likes Westpac…
The post Top broker sees 19% upside for the Westpac (ASX:WBC) share price appeared first on The Motley Fool Australia. –

If you’re looking to invest in the banking sector, then the Westpac Banking Corp (ASX: WBC) share price could be worth considering.

This is because one leading broker is tipping the shares of Australia’s oldest bank to shoot higher.

Is the Westpac share price a buy?

According to a recent note out of Citi, its analysts have a buy rating and $30.00 price target on the bank’s shares.

Based on the current Westpac share price of $25.17, this implies potential upside of 19% over the next 12 months.

And that’s before dividends. Citi is forecasting a $1.30 per share fully franked dividend in FY 2022. Adding this into the equation, the potential total return stretches to just over 24%.

That’s a very attractive return. Especially when you consider that the Westpac share price is already up 28% since the start of the year.

Why does Citi like Westpac?

Citi is positive on the Westpac share price due to the bank’s bold cost cutting plans.

The company currently has a cost base of approximately $12.7 billion, but is aiming to reduce this down to $8 billion in the coming years.

Citi expects the bank’s cost cutting to help offset a number of revenue headwinds it is facing. This is particularly the case in its Markets and Treasury segments, which remain under pressure.

Does anyone else like Westpac?

Citi isn’t the only broker that likes Westpac. The team at Morgans are also positive on the bank and have an add rating and $29.50 price target on its shares.

This is due partly to its valuation, balance sheet strength, and the prospect of significant share buybacks.

In the respect to the latter, Morgans is forecasting $8 billion of off-market share buybacks over FY 2022 and FY 2023. It expects the commencement of these buybacks to be announced alongside its result release in November.

The post Top broker sees 19% upside for 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

Why this top broker thinks the ANZ (ASX:ANZ) share price is overcooked
Westpac (ASX:WBC) and this ASX dividend share could be buys in October
Confirmed: APRA is planning action on home loans, ASX 200 banks drop

Why these experts say the Westpac (ASX:WBC) share price could be on the way up
Why these experts think the NAB (ASX:NAB) share price is on the way up

Motley Fool contributor James Mickleboro owns shares of 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 no position in any of the stocks mentioned. 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!