Deutsche Bank observes Bendigo & Adelaide is overweight mortgages, at 71% of its loan book. The broker is now factoring in a significant increase in impairments.
The Homesafe business is considered vulnerable, with revaluation gains set to reverse on the back of falling house prices.
Deutsche Bank downgrades to Sell from Hold. Target is reduced to $9.50 from $10.75.
Target price is $9.50.Current Price is $9.95. Difference: ($0.45) – (brackets indicate current price is over target). If BEN meets the Deutsche Bank target it will return approximately -5% (excluding dividends, fees and charges – negative figures indicate an expected loss).