The Westpac Banking Corp (ASX: WBC) share price has continued to slide lower in morning trade on Tuesday.
At the time of writing the shares of Australia's oldest bank are down just over 0.5% to $32.35. This brings its week-to-date decline to almost 3%.
Should you buy the dip?
Although I am a shareholder of Westpac, I wouldn't recommend buying its shares at the current price.
Rather, I would class it as a hold and suggest investors wait to see if the post-earnings negative sentiment drags it towards the $30.00 mark after its shares go ex-dividend on November 13.
At that point I think it would be a great investment option for income investors in particular. Westpac's shares would provide a trailing fully franked 6.3% dividend at that level and a decent margin of safety.
I'm not alone in this view. According to a broker note out of Credit Suisse this morning, its analysts have downgraded the bank's share from outperform to a neutral rating and cut its price target to $33.50.
The broker was pleased to see Westpac's balance sheet grow, but was less keen on its soft future guidance.
A bullish view.
Not everyone believes that Westpac is a hold. A note out of Deutsche Bank reveals that it has retained its buy rating and increased its price target to $35.00 following yesterday's results.
Analysts at Deutsche appears to be pleased with the bank's capital position and the improvements in its net interest margin amid external pressures.
