Is the Westpac share price a buy in June?

The Westpac Banking Corp (ASX: WBC) share price has been steadily falling over the last several weeks, as the below chart shows. Sometimes, large declines can be buying opportunities, while other times it’s a reflection of a fair price.  

A lot has happened in the last few months. The Middle East conflict, inflation, higher interest rates and an Australian federal budget.

For me, it’s no wonder there has been volatility this year for the Westpac share price. At this stage, the ASX bank share has dropped 17% since April 2026.

Let’s take a look at whether experts think whether the ASX bank share is attractive or not after falling quite a lot in the past couple of months.

Expert views on the Westpac share price

According to CMC Invest, there have been nine ratings on the ASX bank share within the last three months. Of those nine ratings, three were holds, and six were sells.

So, while the investment professionals weren’t all negative, the average view definitely leans negatively.

Of those nine ratings, the price target from those ratings is $34.22. A price target is where the analyst thinks the share price will be in 12 months from the time of the investment call.  

Therefore, investors are suggesting the Westpac share price could fall slightly in the year ahead.

The most optimistic price target is $40.39, implying a possible rise of 14%, while the most negative price target is $30.29. That suggests a potential further decline of 14% from where it is at the time of writing.

So, despite the fall, analysts aren’t expecting much from the ASX bank share.

Why the negative outlook on the ASX bank share?

There are a few elements that investors should keep in mind.

For starters, Westpac is one of the most heavily-exposed ASX banks to home loans, whereas National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) have higher exposure to business banking.

The change to capital gains tax (CGT) and negative gearing may have a negative impact on residential property loan demand. According to reporting by the Australian Financial Review, Westpac housing investor loan applications have declined 20% over the last three weeks.

Additionally, the fallout of the Middle East conflict has led to banks increasing their loan provisions, hurting short-term profitability.

In the FY26 half-year result, the bank reported a statutory net profit of $3.4 billion, which was down 3% year-over-year and down 5% compared to the second half of FY25.

Its cash net profit was $3.5 billion, representing a 1% decline year-over-year and half over half.

How much is a business worth if its net profit is going backwards? A lower price/earnings (P/E) ratio is justified, in my view.

The main positive for me was the fact that Westpac grew its loan book and deposits by 7%. If its loan book can continue growing by solid single-digits, this should be a good tailwind for earnings and the Westpac share price in the long-term.

For me, it seems like there are other ASX shares that have more potential.

The post Is the Westpac share price a buy in June? appeared first on The Motley Fool Australia.

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• Why the RBA’s decision next week could be the most important event for ASX shares in 2026
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Motley Fool contributor Tristan Harrison 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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.