Is it too late to buy Westpac Banking Corp (ASX:WBC) shares?

Since dropping as low as $27.24 in June, the Westpac Banking Corp (ASX: WBC) share price has managed to climb a solid 9% to $29.79.

Is it too late to buy Westpac shares?

I don’t think it is. Despite this solid recovery, the shares of Australia’s oldest bank are still down 11.5% from their 52-week high.

And while I wouldn’t necessarily expect them to race up to that level again any time soon, I do still see a lot of value in them at this level for patient investors that have little exposure to the banking sector already.

I’m not alone in thinking this. Here are what four bullish brokers have to say on Westpac as an investment:

According to a note out of Ord Minnett, it has an accumulate rating and $33.10 price target on its shares. While the broker expects pressure on retail margins from interest-only loans switching, it believes this has been priced in already.

Analysts at Morgans have an add rating and $35.00 price target on Westpac’s shares. According to the note, the broker felt its first-half cash earnings were in line with expectations and appeared pleased with cost savings from productivity initiatives.

A note out of the Macquarie Group Ltd (ASX: MQG) equities desk reveals that its analysts have an outperform rating and $33.50 price target. This buy recommendation was made largely on valuation grounds with the broker seeing a lot of value in its shares at their current level.

Goldman Sachs has a buy rating and lofty $36.60 price target on the bank’s shares. As well as being pleased with its half-year result, the broker believes that the bank’s superior pre-provision operating profit (PPOP) growth trajectory has not been reflected in its valuation. It has forecast Westpac to deliver PPOP growth of 6% in FY 2018 and 6.7% in FY 2019.

Foolish Takeaway.

While not all brokers are as bullish on Westpac and this is just a small selection of the notes out there, I feel the general consensus is that its shares are a good value at these levels. As such, I think they are a great option ahead of rivals Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group (ASX: ANZ).

But if you're not keen on bank shares then this top dividend share could be a great option for your portfolio.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…


The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!