This report is an updated version of the report published on 13 February 2026 at 12:14 PM AEDT.

MyState Limited (ASX: MYS)

MyState Limited (ASX: MYS) provides banking, trustee and managed fund products and services through its wholly owned subsidiaries, MyState Bank Limited (MyState Bank) and TPT Wealth Limited (TPT Wealth).

Recommendation Rationale – SELL at AUD 4.730

• Overvalued Multiples: On a forward 12-month basis – key trading multiples (EV/Sales, and P/E) are higher than the median of Banking Services industry.
• Deline in Underlying Earnings Per Share: In FY25, the company’s underlying earnings per share decline 4.3% YoY. Underlying return on average equity also declined 40bps YoY in FY25
• Emerging Risks: Key risks include merger integration execution, elevated operating costs, margin pressure from competition and interest rate volatility, regulatory and compliance requirements, technology and cyber risks, and potential earnings or capital efficiency disruption during ongoing systems and cultural integration.
• Technical Standpoint: While undergoing a rally, MYS’s stock price is trading near a significant resistance established by its previous peaks, anticipating a potential correction. Moreover, price is approaching the upper boundary of an ascending wedge pattern, adding further evidence to the previous observation. Price is trading between its previous peak and trough, which could serve as resistance and support levels the stock, respectively.

MYS Daily Chart

Daily Technical Chart, Data Source: REFINITIV

Valuation Methodology: P/E Approach (FY June'26E) (Illustrative)

                                                                                                                                                                Considering the growth in home lending book, acquisition of Selfco, increase in scale, capital base, and home loan, expanding geographic footprint, etc., the company might trade at a slight premium to its peers. For valuation, few peers like Bendigo and Adelaide Bank Ltd (ASX: BEN), Bank of Queensland Ltd (ASX: BOQ), Judo Capital Holdings Ltd (ASX: JDO), and others have been considered.

Considering that macroeconomic uncertainty, elevated operating costs, margin pressure from competition and interest rate volatility, current trading level, and risks associated, the stock can face consolidation at the current levels. Hence, a ‘Sell’ recommendation is given on the stock at the current price of AUD 4.73, at 11:02 AM AEDT, as of 12 February 2026.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 12 February 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.    

Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.