What is the outlook for the Westpac (ASX:WBC) share price?

Where next for Westpac shares?

| More on:
A man looks at his laptop waiting in anticipation.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Westpac Banking Corp (ASX: WBC) share price has been in sensational form again in 2021.

Since the start of the year, the banking giant's shares have risen 26.5% to $24.84.

This means the Westpac share price is now up almost 50% over the last 12 months.

What is the outlook for the Westpac share price?

In light of this strong gain, I thought I would look to see where analysts think the Westpac share price is going from here.

The good news is that there are a number of brokers that believe Westpac shares still have further to run.

One of those is Morgans. Last month the broker retained its add rating and $29.50 price target on the company's shares. Based on the latest Westpac share price, this implies potential upside of almost 19% over the next 12 months before dividends.

And with Morgans forecasting fully franked dividends per share of 112 cents in FY 2021 and 129 cents in FY 2022, the total potential return on offer stretches to around 23.5%.

Is anyone else bullish on Westpac?

Another bullish broker is Citi. Earlier this week the broker retained its buy rating and lifted its price target on the bank's shares to $30.00. This price target implies potential upside of almost 21% over the next 12 months.

A third broker that sees a lot of value in the Westpac share price is Goldman Sachs. It has a buy rating and $29.03 price target on the shares of Australia's oldest bank.

Goldman explained: "We reiterate our Buy on WBC given: The balance of risk to our earnings remains skewed to the upside, with our FY24E cost forecast about 10% above management's FY24E target of A$8 bn (on a like-for-like basis), which, if achieved, would drive our FY24E cash earnings up by c. 7%."

"Volume momentum appears to have been reinvigorated during the [first] half, while containing NIM pressures; The stock is trading more than one standard deviation cheaper versus the sector on PPOP multiples," it added.

All in all, Westpac shares may be outperforming in 2021, but these brokers believe the run can continue.

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Bank Shares

A corporate female wearing glasses looks intently at a virtual reality screen with shapes and lights representing Block shares going up today
Bank Shares

Are Westpac shares a buy following the bank's big tech update?

Is now a good time to buy the banking giant's shares? Let's find out.

Read more »

Different Australian dollar notes in the palm of two hands, symbolising dividends.
Bank Shares

Own CBA shares? It's payday for you!

A dividend is heading to CBA shareholders’ bank accounts.

Read more »

A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price
Bank Shares

Are CBA shares really worth $120?

It has been a good year for ASX bank shareholders.

Read more »

a group of people sit around a computer in an office environment.
Bank Shares

Westpac shares push higher on $9.8b technology simplification plan

Westpac plans to spend big on technology to close the gap on its rivals.

Read more »

A worried woman looks at her phone and laptop, seeking ways to tighten her belt against inflation.
Economy

NAB boss issues dire prediction for Aussie economy

NAB’s CEO has issued a stark warning on the outlook for Australia’s economic growth.

Read more »

Contented looking man leans back in his chair at his desk and smiles.
Bank Shares

Own CBA shares? Here's the tech stock the banking giant just invested in

CBA has made an interesting investment. Here's what you need to know.

Read more »

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.
Bank Shares

ANZ shares charge higher on $57.5 million class action settlement news

ANZ shares have continued their positive run on Monday.

Read more »

Two people comparing and analysing material.
Bank Shares

Better buy: CBA or Westpac stock?

Which ASX bank share is a better buy?

Read more »