Westpac has hit a “pivotal” moment in its turnaround that could see it correct 15 years of under-investment in its technology systems, according to analysts at Barrenjoey Capital Partners, who have upgraded the bank to “neutral” and raised their estimated valuation by more than 10 per cent to $21.While still a discount to its price on Friday afternoon – $21.
“We believe this was a pivotal moment for the group,” he said. “Internally, these proceedings from ASIC were viewed as very disappointing following three years of substantial investment in risk and compliance. He argued that it had also driven Westpac’s declines in customer satisfaction and market share. The uptick in investment would a “stabilise and improve” the retail franchise, the analyst said, even if it proved an expensive exercise.