The Westpac Banking Corp (ASX: WBC) share price is having a poor session on Tuesday.
In afternoon trade, the banking giant's shares are down 2% to $21.48.
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Should you buy the Westpac share price dip?
The broker community is largely undecided on whether investors should be buying Westpac shares following the release of its full-year results.
For example, in response to the release, analysts at Citi, Goldman Sachs, Macquarie, and Morgan Stanley have all retained the equivalent of hold ratings on its shares with price targets ranging from $20.50 to $23.60.
And over at Morgans, its analysts have downgraded the bank's shares to a hold rating with a trimmed price target of $21.58.
What is being said?
Goldman Sachs (neutral, $22.70) revealed that there are things to like about Westpac and sees value emerging in its share price.
However, there's just a touch too much uncertainty with its technology simplification for a buy rating at this point. It explains:
Trading at book value and a 12-mo forward PER of 12.1x (15 year historic average of 12.6x; ex-dividend adjusted), value is emerging. Furthermore, while the technology simplification announced today has been a long time coming, we believe it does, over time, have the potential to materially improve WBC's relative productivity positioning.
However, investors will have to wait for more details on this strategy, and while management believes it can be funded with A$2 bn p.a. of investment spend, the trajectory of WBC's FY24 Visible Alpha consensus expense forecasts highlights the difficulty of managing costs in the current inflationary environment. We therefore stay Neutral ahead of more detail around the costs and expected benefits of the technology simplification.
The Westpac share price is down 7.5% over the last 12 months.
