Citi cuts TP on Australia's Bendigo Bank, flags pricing pressures, rising competition

Bendigo and Adelaide Bank

24/08/2026 22:09

** Citi says Australia's Bendigo and Adelaide Bank's BEN.AX FY26 result highlighted a stronger-than-expected NIM, but the benefit is unlikely to last, with rising competition, integration and regulatory challenges.
** Brokerage sees net interest margin to moderate to 1.93% in FY27 for the bank
** Cuts its FY27-29 cash earnings estimate by 2%, citing term deposit pricing pressures and lending competition
** Citi also reduced the bank's target price by 3% to A$9.70 per share
** "The bank is simultaneously managing a risk refresh, an acquisition, and a technology reshape. This creates a high degree of execution risk in a deteriorating environment" says Citi
** Analysts at Citi retain their "Sell" rating of the stock
** Two of twelve analysts rate the stock "buy" or higher, seven "hold" and three "sell" or lower; their median PT is A$10.50 – LSEG data
** Stock down 0.7% YTD, as of last close 

(Reporting by Shravya Marakini in Bengaluru)
((shravya.marakini@thomsonreuters.com;))