Morningstar sees modest upside for Australia's Bendigo and Adelaide Bank post-RACQ deal

Bendigo and Adelaide Bank

04/12/2025 18:35

** Morningstar keeps fair value estimate unchanged for Australia's Bendigo and Adelaide Bank BEN.AX at A$11 per share

** The regional lender on Thursday announced agreement to acquire RACQ Bank's retail lending assets and deposits

** We like the strategic merit, more low-cost deposits, a low-credit-risk home loan book, leveraging the existing Bendigo cost base, and not paying a premium to book value — Morningstar

** Investment research firm says RACQ Bank acquisition adds nearly 4% to FY27 loan and deposit forecasts and around 5% to profit from FY28

** One of 12 analysts rate the stock "buy" or higher, seven "hold" and four "sell" or lower; their median PT is A$11, according to data compiled by LSEG

** Stock has fallen 22.7% this year, as of last close

(Reporting by Roshan Thomas in Bengaluru)

((Roshan.Thomas@thomsonreuters.com))