UBS takes positive view on Aussie banks
UBS has started research coverage on major banks with a positive view on the sector.
The broker sees about 10% share price upside across the sector, noting that the banks are "defensive in a volatile and uncertain market."
Westpac was its top pick and highest conviction Buy rating is on Westpac, where it saw 23% share price upside to $25 over 12 months, ahead of its update this morning.
UBS also has Buy ratings on ANZ and NAB, seeing 13% and 12% upside to respective 12-month targets of $30 and $30.50, but was Neutral on CBA with a $95 target.
"Top down, the base case set-up for the banks is strong, with tailwinds from an improving macro backdrop and gradually rising interest rates supportive of accelerated topline revenue growth and expanding return on equity," UBS says.
WBC Price at posting:
$20.60 Sentiment: Buy Disclosure: Held
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