Morgan Stanley Keeps Bearish View on Westpac Despite Good Cost Control
Morgan Stanley analyst keeps an underweight rating on Westpac and lifts the target price 3.3% to A$31.00, Market Talk reports.
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what happened
Morgan Stanley analyst Richard E. Wiles remains negative on Australian bank Westpac. He sees downside risks to both earnings and trading multiples, although he notes solid business lending growth, good cost control and sound credit quality. In the bank's most recent fiscal half, mortgages weakened and margins were soft.
In a note to clients, Wiles says he is more confident in Westpac's cost control, but margin pressure will leave FY 2027 revenue growth well behind volume growth. Morgan Stanley keeps its underweight rating and raises its target price 3.3% to A$31.00. According to Market Talk, the shares were down 0.2% at A$37.105.
why it matters
For the market, this is a reminder that growing loan volumes do not guarantee higher revenue when margins are squeezed. A higher target price alongside a negative rating points to a revised model rather than optimism about the stock. The story concerns one bank, so its reach across the sector is limited.
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- Westpac Keeps Bear Despite Good Cost Control — Market Talk, 3 November 2026 at 00:14 UTC
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