ANZ Raised, NAB Cut at CLSA; Staying Underweight Australia Banks
(Bloomberg) -- ANZ raised ‘reluctantly’ amid cost cuts to a ‘lukewarm’ outperform, analysts led by Brian Johnson write in report dated May 26.
- National Australia Bank cut to underperform from outperform as sale of overseas units creates near-term earnings gap
- CLSA maintains Commonwealth Bank sell, Westpac underperform
- Remains underweight Australian banks on concerns of slowing EPS, risk of capital raising and dividend cut; Sees big 4 banks A$33b short of common equity tier 1 capital
- NOTE: CBA, ANZ, NAB, Westpac raised a record A$20b in 2015 to meet new regulations
- Fears of an Australian property bubble resurfacing, CLSA says
- NOTE: Two-thirds of major bank lending is mortgages
- Bloomberg analyst rating data:
- CBA: 7 buys, 6 holds, 3 sells; avg PT A$79.57
- WBC: 9 buys, 6 holds, 1 sells; avg PT A$32.25
- ANZ: 8 buys, 6 holds, 2 sells; avg PT A$26.96
- NAB: 7 buys, 7 holds, 2 sells; avg PT A$28.84
- NOTE: May 25: Westpac raised on minimal mining exposure; CBA cut: Macquarie
Alert:
HALISTER1Source: BFW (Bloomberg First Word)
Tickers ANZ AU (Australia & New Zealand Banking Group Ltd)
CBA AU (Commonwealth Bank of Australia)
NAB AU (National Australia Bank Ltd)
WBC AU (Westpac Banking Corp)
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