Bears Think Westpac Is Optimistic on Mortgage Growth -- Market Talk

Dow Jones06-22 08:23

0023 GMT - Westpac's bears at Morgan Stanley think that the Australian bank is being too optimistic over the prospects of growth in the country's home-loan market. Westpac believes that industry growth will slow to about 4.5% against a backdrop of higher interest rates and tax changes, but MS analyst anticipate only 4% growth in the first half of the bank's 2027 fiscal year. They see an even more modest 3% in the second half. The analysts tell clients in a note that Westpac's credit quality remains sound and that costs are being controlled well, but they maintain an underweight rating. MS has a target price of 31.50 Australian dollars on the stock, which is down 0.9% at A$34.71. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

June 21, 2026 20:23 ET (00:23 GMT)

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