Westpac Banking downgraded to Underweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Richard Wiles downgraded Westpac Banking to Underweight from Equal Weight with a price target of A$21.70, up from A$20.90. While Morgan Stanley believes the balance of risks for major Australian banks has improved, the firm noted that Westpac has re-rated recently despite “significant” execution risks and the fact it is “unlikely” to see material ROE improvement before FY26.