Macquarie stays underweight on Australian banks, upgrades price target across sector

Bendigo and Adelaide Bank

23/09/2025 03:32

** Macquarie maintains 'underweight' stance on Australian banking sector given subdued revenue projections, designating ANZ ANZ.AX and National Australia Bank NAB.AX as preferred sector exposures

** Revises price target as follows -

(A$/sh)
CBA
NAB
ANZ
WBC
BEN
BOQ
New PT
106
37.5
32.5
31
11
6
Old PT
105
35.5
31
30
10.5
5.75

** Cuts bad debt forecasts 20-30% for FY26-28 on favourable macro conditions; sees credit quality as key upside driver

** Upgrades EPS estimate by 2-6% over next 3 years across banks

** On YTD-basis, financials subindex .AXFJ, which is led by banks, is up 10.9%; NAB and ANZ gain 17.7% and 15.7%, as of last close; benchmark .AXJO up 8.5%

 (Reporting by Jasmeen Ara Shaikh and Kumar Tanishk in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk;JasmeenAraIslam.Shaikh@thomsonreuters.com))