Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade

The Bendigo and Adelaide Bank (ASX: BEN) share price closed lower today, falling further than other ASX 200 banks amid a broker downgrade.

Bendigo Bank shares slipped 3.08% to finish at $8.50 apiece. For perspective, the S&P/ASX 200 (ASX: XJO) gained 0.23% today.

Let’s take a look at how Bendigo Bank and other ASX 200 bank shares fared on Wednesday.

What’s impacting ASX 200 bank shares?

Bendigo Bank shares were not the only ASX 200 bank shares to fall today. National Australia Bank Ltd (ASX:NAB) shares closed down 2.24%, while Westpac Banking Corporation (ASX: WBC) slid 0.74% and Bank of Queensland Ltd (ASX: BOQ) shares fell 1.7%.

However, Commonwealth Bank of Australia (ASX: CBA) shares climbed 0.29%, while ANZ Group Holdings Ltd (ASX: ANZ) shares closed a slim 0.09% higher.

Bendigo Bank shares fell amid broker UBS placing a “sell” rating on Bendigo shares with an $8 price target. This implies a downside of about 5.9% based on today’s closing price.

Commenting on the banks, UBS analyst John Storey said, cited by The Australian:

Recent events in the US and Europe in our view have lowered the confidence threshold of investors for banks in their portfolios.

Australia is no different, with the ASX banking index now down about 6.5 per cent year-to-date compared to the market falling 1.5%.

UBS has also cut NAB to a sell with a $25 price target, while Westpac has been slashed to neutral with a $22.50 price target, the Australian Financial Review reported.

UBS still rates ANZ a buy but with a lowered $25 price target, while CBA’s neutral rating has been maintained with a slightly lower price target of $100. Meanwhile, Bank of Queensland has also been downgraded to sell with a $6 price target.

Share price snapshot

The Bendigo Bank share price has fallen 17% in the last year. In the past month alone, Bendigo Bank shares have declined 13%.

Bendigo Bank has a market capitalisation of about $4.8 billion based on the current share price.

The post Bendigo Bank shares worst of the ASX 200 banks following UBS downgrade appeared first on The Motley Fool Australia.

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More reading

• Down 10% in a month, what’s going on with the Bank of Queensland share price?
• Why Bendigo and Adelaide Bank, Jervois Global, Megaport, and NAB are dropping today
• Own CBA shares? Here’s the ASX 200 bank’s latest small business outlook
• Is time running out to buy high-yield ASX dividend shares?
• Stay away from this ASX sector (and buy this one instead): expert

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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