Can the Bendigo Bank (ASX:BEN) share price stick above the $10 mark?

Bendigo Bank shares edged above $10 for the first time this month today. But can they go higher?

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Key points

  • The Bendigo Bank share price finished in the green today
  • One broker has recently upgraded the price target on the bank's share 
  • ASX bank shares closed ahead today after the US reserve raised rates 

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price climbed today, but can it get higher?

The bank’s shares nudged over the $10 mark on Thursday to close at $10.03, a 0.5% gain.

Let’s take a look at what is happening at Bendigo Bank.

Broker upgrade

Credit Suisse has recently upgraded the bank to “outperform”, The Australian reported. The analysts have an $11.10 target price on the bank.

This is 10% more than the current share price. Bendigo Bank will be offering a fully franked dividend of 26.5 cents per share on 31 March. This is 12.8% more than the prior corresponding half of H1 FY21.

Morgans has also recently upgraded the bank’s shares to equal weight from underweight, as my Foolish colleague Aaron reported recently. Jarden Australia has also lifted its price target on the bank’s shares.

Bendigo Bank reported positive H1Y22 results in the latest reporting period and its shares jumped nearly 2% on the back of these results. Profit surged a massive 31.7% to $321.3 million. Bendigo Bank revenue increased 8.5% while cash earnings jumped by 18.7% to $260.7 million.

Many ASX bank shares also jumped today. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price climbed 1.32%, National Australia Bank Ltd (ASX: NAB) jumped 1.27%, and Commonwealth Bank of Australia (ASX: CBA) leapt 1.33%.

The US Federal reserve raised interest rates by 0.25% in a meeting on Wednesday in America. AMP chief economist Shane Oliver said the Reserve Bank of Australia will follow in their footsteps, the Sydney Morning Herald reported.

Dr Oliver stated:

The RBA will soon follow the Fed in starting to raise interest rates. We expect the first hike to come in June taking the cash rate to 0.25 per cent, with three hikes in total this year taking it to 0.75 per cent by year end.

Bendigo Bank share price snapshot

The Bendigo Bank share price has gained nearly 3% in the past 12 months but has surged 10% this year to date.

In the past month, Bendigo Bank shares have fallen 0.4%, but have risen 8% in the past week.

Bendigo Bank has a market capitalisation of $5.6 billion based on the current share price.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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