Despite a solid run since the start of June, year-to-date the Westpac Banking Corp (ASX: WBC) share price is down almost 3% to $31.72.
Does this make it a good time to invest?
I think it does. Whilst I feel a great entry price for Westpac shares is at the $30.00 mark, I do still see a lot of value in Australia's oldest bank today.
I'm not alone in this view either.
According to a research note out of Deutsche Bank last month, its analysts still see meaningful upside for the bank's shares.
The broker retained its buy rating and $34.50 price target on Westpac following its third-quarter update in August. Deutsche appears confident that the bank is on course to reach its analysts' CET1 ratio forecast of 10.4%.
Deutsche's price target implies potential share price upside of almost 9% from the last close price.
Which, when you factor in the bank's trailing fully franked 6% dividend, means a potential total return of close to 15% for investors.
I believe that the risk/reward on offer here is compelling and makes Westpac a great option for investors with little to no exposure to the banks already.
Whilst it isn't the cheapest bank available to investors, it still remains my first choice in the industry ahead of rival Commonwealth Bank of Australia (ASX: CBA).
