Insights

Top brokers says Westpac (ASX:WBC) share price is a buy

Westpac could be a bank to buy…
The post Top brokers says Westpac (ASX:WBC) share price is a buy appeared first on The Motley Fool Australia. –

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

Although the shares of Australia’s oldest bank are up 32% in 2021, one leading broker believes they can go higher.

Who is bullish on the Westpac share price?

The team at Goldman Sachs still see a lot of value in the Westpac share price.

According to a recent note, the broker has a buy rating and $29.83 price target on the bank’s shares.

Based on the latest Westpac share price of $26.02, this implies potential upside of 14.5% over the next 12 months.

In addition to this, Goldman Sachs is forecasting fully franked dividends per share of 116 cents in FY 2021, 128 cents in FY 2022, and 141 cents in FY 2023. This represents attractive yields of 4.5%, 4.9%, and 5.4%, respectively, over the three financial years.

What did the broker say?

Goldman is positive on the bank due to its belief that the risk is to the upside for earnings in the near term. This is due largely to management’s bold cost cutting plans.

The broker explained: “We maintain our Buy rating given: i) the balance of risk to our earnings remains skewed to the upside, with our FY24E cost forecast about 10% above management’s FY24E target of A$8 bn (on a like-for-like basis), which, if achieved, would drive our FY24E cash earnings up by c. 7%; ii) volume momentum appears to have been reinvigorated, now tracking at 7.5% 3-month annualised as at Jun-21 (vs 0.2% 6 months ago), and iii) the stock is trading more than one standard deviation cheap versus the sector on PPOP multiples (15% discount vs. 1.5% long-run average discount), and our revised TP offers 22% TSR [at the time].”

So while the Westpac share price has smashed the market this year, Goldman doesn’t believe it is too late to invest.

The post Top brokers says Westpac (ASX:WBC) share price is a buy 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

Two exciting international shares to consider as superfunds hit record global investments

What is the outlook for the Westpac (ASX:WBC) share price?
ASX 200 bank shares could struggle due to lockdowns – expert

Here’s why the Westpac (ASX:WBC) share price is down in the last 3 months
How does the NAB dividend compare to its sector?

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!