The first half-credit impairment charge is slightly lower than Morgans expected. The broker believes the announcement aligns with its base case that Westpac will not raise capital.
Estimates of cash earnings per share for FY20 are increased by 1.9%. Add rating and $19.50 target maintained.
Sector: Banks.
Target price is $19.50.Current Price is $14.92. Difference: $4.58 – (brackets indicate current price is over target). If WBC meets the Morgans target it will return approximately 23% (excluding dividends, fees and charges – negative figures indicate an expected loss).
