ASX bank stocks dominate the Australian share market, particularly the big 4 major banks: Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and ANZ Group Holdings Ltd (ASX: ANZ). Together, the 4 majors make up around a quarter of the S&P/ASX 200 Index (ASX: XJO) by market capitalisation.
There are more smaller players outside of the majors, though. Macquarie Group Ltd (ASX: MQG), Bank of Queensland Ltd (ASX: BOQ), Bendigo and Adelaide Bank Ltd (ASX: BEN), and Judo Capital Holdings Limited (ASX: JDO) are alternative options for investors looking for banking exposure. Bendigo Bank is the only one not listed on the ASX 200 Index.
At the time of writing, CBA shares are down 0.81% to $150.82, Westpac shares are down 0.86% to $37.08, NAB shares are 0.74% lower at $40.12, and ANZ shares are down 0.12% to $34.69.
Outside of the majors, Macquarie shares are 0.12% lower at the time of writing to $195.73; BOQ shares are 0.16% higher at $6.35 a piece; Bendigo shares are 0.2% higher at $10.10 each; and Judo shares have climbed 1.93% to $1.69.
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Which ASX bank stocks are a buy?
While sentiment around Macquarie shares is mixed, overall, analysts are pretty positive on the stock. Out of 14 analysts, 7 have a buy or strong buy rating on the shares, and the maximum target price is as high as $264.98. This implies a potential 34.9% upside from the share price at the time of writing.
Broker consensus for Judo Bank shares is a strong buy. The maximum target price is $2.40, implying a potential 42.26% upside for the ASX bank stock over the next 12 months. Analysts and investors appeared to be pleased with the bank's latest AGM update and think the stock is currently undervalued with the likelihood of a substantial upside ahead.
Which ASX bank stocks are a sell?
Analysts think CBA's premium share price is far too expensive right now, and overdue a correction. The majority have a sell rating on the banking giant's stock, with a target price as low as $96.07 each. This implies a potential 36.26% downside over the next 12 months, based on the share price at the time of writing. The team at Medallion Financial Group urges investors to be cautious about buying the stock.
Westpac shares are also tipped to sink further over the next 12 months. The team at Macquarie has an underperform rating on the stock and a target price of $31. This implies a potential 22.7% downside at the time of writing. The bank is expected to have limited growth over the coming years.
Analysts also have a sell rating on NAB shares. The team at Morgans said the bank missed consensus expectations of flat earnings in the second half of FY25. The broker has a sell rating and $31.46 target price on the stock. This implies a potential 21.6% downside for investors.
Bendigo Bank shares have been dealt an underperform rating and $10.50 target price by the team at Macquarie. This implies a potential 3.9% upside could be ahead for the bank, using the current trading price. The broker said it isn't overly impressed with the bank's latest results, saying it missed consensus expectations by 8%.
BOQ shares are also on the chopping board right now. The majority of analysts have a sell or strong sell rating on the shares. They expect the price could drop as low as $4.64 over the next 12 months. That's a potential 27.2% downside at the time of writing. Macquarie analysts said the bank's valuation is stretched and that there is a downside risk to its earnings and margins.
Which ASX banks stocks are a hold?
ANZ is lagging behind the other big 4 banks, and while its shares are higher for the year to date, brokers at Macquarie said the bank is showing early signs of revenue underperformance. The broker has a neutral rating on ANZ shares with a target price of $35, which implies a 0.9% upside at the time of writing.
