ANZ shares slide as UBS downgrades to 'sell'
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The news: ANZ led a selloff of the major banks in early trading after UBS downgraded the big four lender from 'neutral' to 'sell'.
The numbers: ANZ shares were down 1.6% to $27.94 at 11am AEST. Westpac (-1.2%), Commonwealth Bank (-0.8%) and NAB (-0.6%) were also down.
UBS downgraded its rating on the stock and also cut its price target from $30 to $26.50.
The context: UBS analysts said ANZ is the "most interesting" stock across their coverage, having underperformed by around 66% relative to its peers over the past five years.
They noted that while the commencement of new CEO Nuno Matos offers a chance for a clean slate and an opportunity to reset, "significant and decisive actions" are still required to enhance shareholder value.
They flagged that ANZ's weaker retail franchise is a key competitive disadvantage with cash profits declining by nearly $1 billion in recent years.
The source: UBS research
