The Westpac Banking Corp (ASX: WBC) share price has been on a rollercoaster ride recently.
After touching a 52-week high of $29.80 on 31 July, the stock has since gyrated with the broad market and was down more than 5% from that mark at $28.24 apiece near Monday's close.
As one of Australia's 'big four' banks, Westpac remains a key player on the ASX, especially for income-focused investors.
But with the recent price volatility, what can we expect for Westpac's share price in the second half of 2024?
Where could the Westpac share price head next?
Analysts have mixed views on Westpac's share price trajectory for the remainder of the year.
Goldman Sachs, for instance, has set a price target of $24.10 per share for the business, suggesting that it could decline further by around 15%.
The primary concerns driving this bearish outlook include Westpac's ambitious technology overhaul — which comes with significant execution risks – and its heavy exposure to the Australian housing market.
Given that the Australian household debt levels are already high, Goldman believes any slowdown in the housing sector could impact Westpac's earnings and, consequently, its share price.
It's not just Goldman that's cautious. JP Morgan downgraded the bank to a sell last week.
Similarly, Citi and UBS also have sell ratings on Westpac, valuing it at $24.75 and $25 apiece, respectively.
These targets suggest an 11% downside potential from the current range.
Based on these broker estimates, the Westpac share price could be between $24 and $25 per share by the end of this year.
What about dividends?
Despite the cautious outlook on the share price, Westpac's dividend yield may still be a strong draw for income investors.
Over the past 12 months, Westpac paid out fully franked dividends totalling $1.62 per share, translating to a yield of around 5.7% at the current share price.
Goldman Sachs is forecasting a fully franked final dividend of 75 cents per share to be declared this year.
For the 2025 financial year, Goldman expects Westpac to distribute $1.50 per share in dividends.
If the share price continues to dip, this will only increase the dividend yield – but at the expense of capital.
Foolish takeaway
Westpac could face more pressure in the second half of 2024, with several major brokers projecting declines in its stock. The estimated range is $24 – $25 per share.
While the stock's dividend remains a bright spot, the overall outlook is clouded by concerns over its technology strategy and housing market exposure.
As always, remember to conduct your own due diligence and consult professional advice before making any investment decisions.
