Bendigo & Adelaide Bank (BEN) - Right price
March 11, 2025
Bendigo & Adelaide Bank Limited provides banking and other financial services to retail customers and small to medium sized businesses in Australia.
We raised our recommendation on the stock from Lighten to Hold on valuation grounds, following a big drop in the share price when it reported its first-half FY25 results. A weak first-half FY25 earnings reflected a higher operational and funding costs as the bank struggled to deal with a much-stronger than expected boost to lending volumes from its new lending platform.
Steps have been taken to ameliorate those problems, however, with more rational pricing on home loans, and on the deposits to fund them, supporting the bank’s net interest margin (NIM) and lifting returns, while additional staff have been deployed to deal with the high volumes.
Insights that count
Discover the best opportunities to outperform the market. Our research team dig deep into the market, company and stock data to bring you insights others might overlook.
Amcor (AMC) – Sticking it out
Amcor manufacturers and sells rigid and flexible packaging products in Europe, North America, Latin America, and the Asia Pacific, and sells through its direct sales force.
Goodman Group (GMG) – Arriving now
Goodman Group owns, develops and manages logistics and industrial properties and data centres in major global cities.
Aurizon Holdings (AZJ) – Yield appeal
Aurizon Holdings is a freight business in Australia. It operates through network, coal, bulk and other segments, serving mining, metal, industrial, and agricultural customers.
.jpg)