Is this U.S.-China selloff a buy? A top Wall Street voice weighs in
Investing.com - Goldman Sachs initiated coverage on Westpac Banking Corp. (ASX:WBC) (NYSE:WBK) with a Neutral rating and a price target of AUD37.63 on Thursday.
The investment bank noted that Westpac has entered a new phase following post-COVID challenges, with regulatory enforcement actions resolved and new leadership under CEO Anthony Miller focusing on cost competitiveness through Project Unite and targeted revenue growth in business banking.
Goldman Sachs acknowledged the bank’s encouraging asset and revenue growth but highlighted uncertainties regarding Project Unite’s overall cost and timeline, while also noting that competitive responses from peers could make further market share gains more difficult to achieve.
The firm expects modest earnings growth for Westpac due to the impact of interest rate cuts, with its estimates aligning with broader market consensus.
Following significant share price appreciation over the past 12-18 months, Goldman Sachs believes Westpac stock is fairly valued, with limited potential for further outperformance given the economic backdrop of slowing credit business growth, falling net interest margins, and gradually increasing loan impairments.
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