Why is the Westpac (ASX:WBC) share price outperforming on Monday?

Westpac shares are on form on Monday…

| More on:
CBA share price money laundering asx bank shares represented by large buidling with the word 'bank' on it

Image source: Getty Images

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.

Anything else?

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.

Should you invest $1,000 in Westpac right now?

Before you consider Westpac, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Westpac wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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 Share Gainers

Technology Shares

Droneshield share price leaps 10% amid strong Ukrainian demand

The company's anti-drone systems are employed by militaries, law enforcement and private enterprises across the world.

Read more »

A kid and his grandad high five after a fun game of basketball.
Share Gainers

3 ASX All Ordinaries shares hitting multi-year highs on Monday

These names are outpacing major benchmarks today.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

Why Brambles, Core Lithium, Infomedia, and Qube shares are charging higher

These ASX shares have started the week strongly...

Read more »

A man sits on a couch with his arms out feeling exasperated while looking at the Costa share price going down on his laptop today
Share Gainers

Why is the ASX 200 giving back the morning’s gains on Monday?

Aussie shares are showing mixed results on Monday.

Read more »

Person pointing at an increasing blue graph which represents a rising share price.
Share Gainers

Why is the Nitro Software share price rallying 5%?

Tech shares are showing signs of life again on Monday.

Read more »

A graphic showing a businessman running up a white upwards rising arrow symbolising the soaring Magellan share price today
Share Gainers

Here’s why the Chrysos share price is rebounding 16%

Investors are staging a comeback for the company.

Read more »

A drawing of a rocket follows a chart up, indicating share price lift
Share Gainers

Here’s why the Australian Strategic Materials share price is surging 31% today

The ASX rare earths and critical metals miner has come under selling pressure since hitting record highs in November last…

Read more »

A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.
Share Gainers

These were the best performers on the ASX 200 last week

These ASX 200 shares avoided the market selloff...

Read more »