Morgans does not believe, at this stage, the bad debt damage inflicted on the banks by the virus will be as bad as the GFC, largely due to the extent of monetary/fiscal support. Among the Big Four, Westpac’s bad debt provisions are greater than that of the GFC, hence that stock is most preferred by the broker, while Commonwealth Bank is the least preferred given less fear is priced in than the others.
The broker sees ANZ Bank as paying a final dividend in November. Yesterday the broker upgraded to Add. Today the target is lifted to $21 from $17.
Sector: Banks.
Target price is $21.00.Current Price is $18.97. Difference: $2.03 – (brackets indicate current price is over target). If ANZ meets the Morgans target it will return approximately 10% (excluding dividends, fees and charges – negative figures indicate an expected loss).
