0238 GMT - Current market expectations and trading multiples have set a very high bar for Australia's banks in 2025, Morgan Stanley analysts say in a note. "While multiples have remained elevated for many months, we think a de-rating is likely in the year ahead," they say. As share prices stand, meaningful upgrades to consensus EPS and dividend forecasts appear to already be priced in. "There is very little margin for error," say the analysts. They prefer nonbank financial stocks in Australia this year. Among major Australian banks, MS's order of preference is overweight-rated NAB, followed by equal-weight-rated ANZ, and then underweight-rated Westpac and CBA. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
January 09, 2025 21:38 ET (02:38 GMT)
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