WBC – Citi rates the stock as Buy

Citi expects the big story in Westpac Banking’s FY21 results will be the reported weak exit net interest margin of 1.91-1.93%, a material miss on an expected 1.98-2.00%. The broker notes this is likely an inversion of replicating portfolio momentum but awaits further detail.

Full year cash earnings of $5,352m missed Citi’s forecasts by 1-2%, driven by a 6-7% miss on core earnings. Costs of $10.9bn were higher than expected, and while cost guidance for FY22 was not provided the company reiterated an $8bn cost base target for FY24.

The Buy rating and target price of $30.00 are retained.

Sector: Banks.

 

Target price is $30.00.Current Price is $23.78. Difference: $6.22 – (brackets indicate current price is over target). If WBC meets the Citi target it will return approximately 21% (excluding dividends, fees and charges – negative figures indicate an expected loss).

 

 

About Broker News

FNArena's Australian Broker Call, is your daily news report on the latest recommendation, valuation, forecast and opinions recently published by Stockbrokers.

View more articles by Broker News →