Citi has updated its ratings for several Australian banks, citing the nation’s improved economic outlook as a key factor benefiting lenders. Judo Bank received the most significant upgrade, moving from a ‘neutral’ rating to a ‘buy.’ The target price for Judo Bank was also increased to $2.00 from $1.85. Citi equity analyst Thomas Strong noted that Judo Bank is expected to leverage substantial growth, sensible competition, and diversification of its product offerings. Judo Bank focuses on providing financing to small and medium-sized businesses in Australia.
Westpac and Bank of Queensland (BOQ) also saw positive adjustments, both being upgraded from ‘sell’ to ‘neutral.’ Correspondingly, Citi revised its price targets for these institutions. Westpac’s target price rose to $36.50 from $29.75, while BOQ’s target increased to $6.60 from $6.00.
Among the major banks, ANZ remains Citi’s preferred choice, followed by Westpac, National Australia Bank (NAB), and Commonwealth Bank (CBA). CBA’s price target was adjusted upwards to $130 from $110, though its ‘sell’ rating was maintained. Bendigo Bank’s target price also increased slightly to $11.00 from $10.50, while keeping its ‘sell’ rating.
Price targets for other major banks were also updated: NAB’s target rose to $36.00 from $31.50, maintaining a ‘sell’ rating, and ANZ’s target moved to $32.50 from $29.50, with a continuing ‘neutral’ rating. Citi’s adjustments reflect a recalibration of expectations in light of the current economic environment.
