Jefferies raises Westpac's price target ahead of FY26 result

** Jefferies raises its price target on Westpac WBC.AX to A$34.99 from A$34.71 and maintains a "hold" rating ahead of the bank's FY26 result on November 2

** Brokerage forecasts FY26 gross loans and advances to rise 5% YoY, with housing and non-housing lending growth of 2% and 12%, respectively

** It expects FY27 cash NPAT of A$6.96 bln ($4.87 bln), broadly flat YoY, with volume growth offset by margin pressure and higher bad-debt charges

** Brokerage expects mortgage competition to continue limiting margin upside, with FY27 net interest margin forecast at 1.87% versus 1.88% in FY26

** Forecasts a CET1 ratio of 12.48%, broadly unchanged from 12.5% in FY25, and no longer expects a special dividend despite strong capital levels

** Stock down 9% YTD, as of last close

($1 = 1.4284 Australian dollars)