If you're looking to invest in the banking sector, then the Westpac Banking Corp (ASX: WBC) share price could be worth considering.
This is because one leading broker is tipping the shares of Australia's oldest bank to shoot higher.
Image source: Getty Images
Is the Westpac share price a buy?
According to a recent note out of Citi, its analysts have a buy rating and $30.00 price target on the bank's shares.
Based on the current Westpac share price of $25.17, this implies potential upside of 19% over the next 12 months.
And that's before dividends. Citi is forecasting a $1.30 per share fully franked dividend in FY 2022. Adding this into the equation, the potential total return stretches to just over 24%.
That's a very attractive return. Especially when you consider that the Westpac share price is already up 28% since the start of the year.
Why does Citi like Westpac?
Citi is positive on the Westpac share price due to the bank's bold cost cutting plans.
The company currently has a cost base of approximately $12.7 billion, but is aiming to reduce this down to $8 billion in the coming years.
Citi expects the bank's cost cutting to help offset a number of revenue headwinds it is facing. This is particularly the case in its Markets and Treasury segments, which remain under pressure.
Does anyone else like Westpac?
Citi isn't the only broker that likes Westpac. The team at Morgans are also positive on the bank and have an add rating and $29.50 price target on its shares.
This is due partly to its valuation, balance sheet strength, and the prospect of significant share buybacks.
In the respect to the latter, Morgans is forecasting $8 billion of off-market share buybacks over FY 2022 and FY 2023. It expects the commencement of these buybacks to be announced alongside its result release in November.
