Jefferies says Australia's Westpac 'Unite' program benefits priced in 'too fast'

Westpac Banking

11/06/2026 23:05

** Jefferies retains 'hold' rating on Australia's Westpac WBC.AX and is encouraged by management's long-term focus on the Unite program but believes the market priced in its benefits 'too fast'
** The brokerage flagged near-term risks related to expense growth, and notes net interest margins look more vulnerable than peers over the next 12 months
** Says at 12-month forward PE of 16x, market has been too quick to factor in the potential upside from the Unite program, which is not expected to be finalised until FY29
** Unite program is an initiative aimed at reducing costs and improve earnings
** Adds that while near-term risk appears manageable, rising uncertainty over FY27–28 leaves valuation looking stretched
** Five of twelve analysts rate the stock "hold" and seven "sell"; their median price target is A$33.53, as per data compiled by LSEG
** Down ~11% YTD, as of last close
     
     

 (Reporting by Anjali Singh in Bengaluru)
 ((anjali.singh2@thomsonreuters.com;))