Update shared on 12 Nov 2025
Fair value Decreased 2.01%Analysts have lowered their price target for Bendigo and Adelaide Bank from $11.78 to $11.54. They cite slightly softer forecasts for revenue growth and margin, which is in line with tempered expectations reflected in recent research coverage.
Analyst Commentary
Analyst sentiment on Bendigo and Adelaide Bank appears mixed, balancing acknowledgment of progress in key metrics with caution on certain forward-looking objectives.
Bullish Takeaways
- Recent coverage has highlighted an ambitious return on equity target, which suggests potential for improved profitability.
- Analysts see stable performance as justified by the current valuation, lending support to a neutral-to-positive outlook.
- Ongoing strategic initiatives are viewed as capable of driving moderate growth in the medium term.
Bearish Takeaways
- Some caution that revenue and margin growth forecasts remain muted, which may limit re-rating potential in the near term.
- The ambitious return on equity target is considered challenging to achieve in the existing market environment.
- Concerns persist regarding execution risks related to ongoing transformation strategies and competitive pressures.
What's in the News
- Bendigo and Adelaide Bank hosted an Analyst/Investor Day to discuss company performance and future strategic direction (Key Developments).
- The company held another Analyst/Investor Day, highlighting its engagement with stakeholders and its commitment to transparent communications (Key Developments).
Valuation Changes
- Fair Value: Decreased from A$11.78 to A$11.54, reflecting a modest downward adjustment.
- Discount Rate: Marginally reduced from 7.84% to 7.81%, indicating a slightly lower risk premium applied in updated models.
- Revenue Growth: Trimmed from 3.76% to 3.69%, which signals slightly softer growth expectations.
- Net Profit Margin: Lowered from 25.76% to 25.11%, suggesting a small reduction in projected profitability.
- Future P/E: Increased from 14.87x to 14.97x, pointing to a slightly higher valuation multiple anticipated for the company.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.