WBC

A compilation of updates by brokers:

Citigroup Investment Research have rated the Westpac stock with a Buy recommendation with a share price target of $24.50. The analyst believes that the stock price is overdue to catch up with its peers and think the stock will outperform its peers in the next 6 to 12 months.

Macquarie Research Equities (MRE) have reviewed the recent bank sector performance after the end of the recent banking reporting season. Within the banking sector, MRE continues to prefer ANZ (12 month share price target of $28.75) and CBA (12 month share price target of $47.60) given solid revenue growth and the capacity to look to cost opportunities should conditions slow (rather than reverting to cost management just to deliver competitive growth in the current strong environment).

Last week the Australian government handed down their 2006-07 federal budget. Macquarie Research Equities (MRE) notes that "The centre piece of the Budget was the personal income tax cuts which were more widespread and extensive than the financial markets had been anticipating. This will inevitably provoke fears that interest rates may have to rise in order to offset the fiscal stimulus.
The key initiatives announced in the Budget that have notable implications for the Australian listed market are as follows:
- Reductions in the tax rates on personal income as well as increases to the thresholds for each tax rate;
- Accelerating the depreciation allowance for eligible business investment;
- Abolition of the Reasonable Benefit Limit (RBL) and age based contribution limits, and the elimination of tax of benefits paid to retires from taxed superannuation funds."
Here are some Australian listed stocks that MRE believes that will benefit from the budget:

Macquarie Research Equities’ (MRE) have retained their Neutral recommendation for Westpac Banking (WBC). WBC slipped today -2.6 per cent closing at $24.37. Westpac have matched market expectations but the results did not meet the optimistic expectations built into the share price before the announcement. MRE prefers ANZ and CBA over WBC in the banking sector. Westpac Banking Corporation is listed on the Australian Stock Exchange (ASX) under stock code WBC. Check your charts.

Westpac Banking Corporation (WBC) have outperformed the bank sector and the market (XJO) over the past two months and there is speculation of an increasing dividend payout ratio. Westpac (WBC) is reporting its 1H06 result this Thursday, 4 May, and Macquarie Research Equities (MRE) believes that, given this good run of Westpac's share price, "a good deal of any share price upside may already be priced in to the stock (buy on the rumour, sell on the fact)", and hence unlikely to surprise on the upside.

Shares in Westpac (WBC) have jumped over 2% in morning trade to lead the banking sector higher after announcing an increase to its buy-back program. Australia’s fourth-biggest bank has increased the size of its buy-back to $1b, a $300m increase over its announced target size of $700m. Macquarie Research Equities (MRE) reiterate their outperform recommendation and is MRE’s second top pick in the banking sector behind ANZ.