The Westpac Banking Corp (ASX: WBC) share price has been a positive performer on Monday.
In morning trade, the banking giant’s shares are outperforming the banking sector and up 1.5% to $22.89.
Why is the Westpac share price rising today?
This morning Westpac announced that the latest Independent Reviewer’s report on its integrated plan to improve risk governance has been released. This is part of an enforceable undertaking agreed in December with APRA, following issues found in Westpac’s risk governance.
As of 30 September, Westpac had submitted 121 of 327 activities to the independent reviewer for assessment. Of the activities submitted, 102 were assessed as complete and effective, with the assessment of the remaining 19 still underway.
Westpac also highlights that the report notes that the banking giant’s progress with its integrated plan is on track.
Investors could be pleased with this news and may have been bidding the Westpac share price higher in response.
With the Westpac share price sinking 12% last week following the release of its full year results, some investors may have been swooping in today on the belief that its shares were oversold.
One broker that appears to believe this is the case is Morgans.
Last week while many brokers were downgrading the bank’s shares, its analysts retained their buy rating and lifted their price target on Westpac’s shares to $30.50.
Based on the current Westpac share price, this suggests there’s potential upside of 33% for investors over the next 12 months.
And with Morgans forecasting a $1.23 per share fully franked dividend in FY 2022, the total potential return stretches to over 38%.
While the broker acknowledges that Westpac’s net interest margin disappointed, it feels the selloff was an overreaction and created more value for investors.