Up 12% in 30 days, is the Westpac share price still a buy?

The Westpac Banking Corp (ASX: WBC) share price has had a great month on the market, lifting around 12% in that time.

And despite its recent green streak, many brokers are still predicting gains from the banking giant.

The Westpac share price closed 0.8% higher at $22.66 on Friday.

For context, the S&P/ASX 200 Index (ASX: XJO) finished down 0.54% today while the S&P/ASX 200 Financials Index (ASX: XFJ) slipped 0.22%.

So, what are brokers expecting from the third largest ASX 200 ‘big four’ bank? Let’s take a look.

Does the Westpac share price still offer a notable upside?

The Westpac share price has been on a roll lately, and it still has a decent upside if you ask Goldman Sachs.

The broker has tipped the Westpac share price to reach $26.12, slapping it with a ‘buy’ rating, my Fool colleague James reports. That represents a potential 15% upside on its current price.

The broker believes the company will benefit from rising interest rates and expects it to up its dividends over the coming years.

It’s tipped Westpac to pay shareholders $1.23 of fully franked dividends in financial year 2022 and $1.35 in financial year 2023.

For context, the bank paid out $1.18 per share in financial year 2021. It’s expected to announce its final dividend for financial year 2022 in November.

The team at Morgan Stanley has also recently been bullish on the bank, placing an ‘outperform’ rating on the stock earlier this month.

And while Westpac shares have since surpassed Morgan Stanley’s price target, investors will likely hope its dividend forecast will come true. The broker tipped $1.25 of dividends for financial year 2022 and $1.30 for financial year 2023.

Finally, Citi had a $29 price target and a ‘buy’ rating on Westpac shares last month, representing a potential 28% upside. On top of that, its dividend outlook was the most bullish by far.

It’s expecting the bank’s shareholders to receive $1.23 per share in financial year 2022 and a whopping $1.55 in financial year 2023.

The post Up 12% in 30 days, is the Westpac share price still a buy? appeared first on The Motley Fool Australia.

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More reading

• Top ASX dividend shares to buy in August 2022
• Own Westpac shares? Here’s when the ASX 200 bank will release its FY22 earnings
• Analysts say these ASX dividend shares are top buys
• Own Westpac shares? This broker expects the bank’s dividends to surge 10% by FY23  
• 2 ASX dividend shares that experts rate as buys

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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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