Westpac

The Australian Banks underperformed the market by 0.7%.The Macquarie Research Equities (MRE) highlights about the Australian Banking Sector Impacts.

Which Banks to Support?

The Australian Banks underperformed the market by 0.7% last week, yet still trade well below their November 2007 highs. Macquarie Research Equities (MRE) highlight their sector picks as WBC and CBA given stronger balance sheets, low risk loan portfolio’s and lower exposure to offshore earnings. MRE assess the week in passing and reaffirm their sector guidance…

Australian Banking Sector reporting season preview from Australian market analyst UBS.

Start scooping up banks. Mild overweight.

Recent price falls provide a buying opportunity:

The Aussie banks have seen a sharp pull back in recent weeks following their global peers. We believe that this has been driven by: (1) concerns for the health of the US investment banks into their reporting season; and (2) overhang from the current global bank rights issues. As a result the Australian banks have now underperformed the All Resources by 46% over the last year.

Here is an update on the Australian banking sector provided by Australian market analyst UBS.

Results and M&A - an eventful month

Reporting season surprised on the upside:

St George Bank (SGB) has a price target of $34.00 from sharemarket analyst Macquarie Research Equities.

St George Bank (SGB) What could the other banks pay?

WBC looks well positioned with SGB Board support:

Given the SGB Board's support for its 1.31 for 1 bid (subject to no superior proposals being made), WBC appears to be well positioned. As a result, we believe a counter-bid would need to be at least 5-10% higher than WBC's proposal in order to win the SGB Board's support. This leads to two key questions.

Westpac (WBC) has been maintained as Macquarie Research Equities (An Australian market analyst) preferred Australian bank stock play.

Westpac (WBC): What will West Pack?

Sharemarket strategist and analyst Macquarie Research Equities have released an Australian banking sector update. The Australian banks have succumbed to a wave of selling in recent weeks, as sub-prime nervousness and associated tightness in credit markets have plagued the sector. Of the four majors, NAB has fared the worst, falling over 19% since its highs earlier in the year, closely followed by ANZ, which is 12% below its prior highs.

Australian stock market analyst UBS has provided an Austrlian banking sector update. They have earmarked Westpac (WBC) as the key Buy recommendation in the banking sector. Westpac (WBC) is their key buy post the appointment of Gail Kelly as CEO of Westpac (starts Feb-2008).