Credit Suisse downgrades estimates by -1-5% following the first half result, to incorporate lower revenue and higher expenses. The broker observes greater confidence around Westpac’s provisioning compared with its peer group.
In addition, the inflation scenarios for risk-weighted assets appears manageable. Outperform rating and $17.90 target maintained.
Sector: Banks.
Target price is $17.90.Current Price is $15.34. Difference: $2.56 – (brackets indicate current price is over target). If WBC meets the Credit Suisse target it will return approximately 14% (excluding dividends, fees and charges – negative figures indicate an expected loss).
