Where’s the Westpac share price heading in July?

The Westpac Banking Corp (ASX: WBC) share price had a tough time in June.

During the month, the banking giant’s shares lost 18% of their value.

Investors were selling down the Westpac share price last month in response to market volatility and the Reserve Bank’s cash rate hike.

Will July be better for the Westpac share price?

The good news is that July has started well for the Westpac share price. Since the start of the month, Australia’s oldest bank has seen its shares rise 2.3%.

But that could be just the beginning of greater gains if the team at Morgan Stanley are on the money with their recommendation.

Last week the broker retained its overweight rating and $22.30 price target on the bank’s shares. Based on where its shares are trading currently, this suggests that there’s potential upside of 12% for investors.

In addition, Morgan Stanley is expecting a $1.25 per share fully franked dividend in FY 2022. This represents a 6.25% dividend yield at current prices.

Is anyone else bullish?

Elsewhere, analysts at Citi still have a buy rating and lofty $29.00 price target on the company’s shares.

While that price target might prove a touch ambitious given the potential threat of a recession, if the Westpac share price were to reach that level it would mean a staggering return of approximately 45% for investors.

Even Goldman Sachs, which has a neutral rating, sees plenty of upside in the company’s shares with its $27.29 price target.

All in all, it does appear that all is not lost for Westpac’s shares after last month’s disappointment. This could make it a bank share to consider in July.

The post Where’s the Westpac share price heading in July? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for ASX 200 dividend shares in FY23?
• Could rising rates hurt ASX 200 bank shares in the longer run?
• Here’s a look at the Westpac share price’s dismal 2022 financial year
• What’s going on with ASX 200 bank shares on Tuesday?
• How did the Vanguard Australian Shares Index ETF perform in June?

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 recommended Westpac Banking Corporation. 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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