Insights

Here’s why Morgans is tipping 21% upside for the ANZ (ASX:ANZ) share price

ANZ’s shares could be cheap right now…
The post Here’s why Morgans is tipping 21% upside for the ANZ (ASX:ANZ) share price appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been among the best performing large caps in 2021.

Since the start of the year, the banking giant’s shares have gained over 23% to trade at $28.38 today.

This is more than double the return of the S&P/ASX 200 Index (ASX: XJO) this year.

Can the ANZ share price keep rising?

Despite the ANZ share price rising strongly already this year, one leading broker believes it can keep rising.

According to a recent note out of Morgans, its analysts have an add rating and $34.50 price target on the bank’s shares.

Based on the current ANZ share price, this suggests there’s still over 21% upside ahead. And that’s not including dividends.

If we include the $1.65 per share fully franked dividend the broker is forecasting in FY 2022, the total potential return widens to a mouth-watering 27%.

Why is Morgans a fan?

ANZ has been the broker’s top pick among the big four for a while now. This is largely due to the valuation of the ANZ share price.

It also likes the bank due to its cost reduction plans and the work it has done reducing the risk of its loan book.

Morgans recently commented: “We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years – particularly its institutional loan book – such that the quality of its loan book has improved. While ANZ’s Australian home loan book has been growing below system over recent months, we expect a disciplined margin performance from ANZ.”

All in all, this could make the ANZ share price one to consider if you’re looking for options in the banking sector.

The post Here’s why Morgans is tipping 21% upside for the ANZ (ASX:ANZ) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in ANZ right now?

Before you consider ANZ, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

2 excellent ASX dividend named as buys

Own ANZ (ASX:ANZ) shares? Here’s what the bank’s CEO is warning on ‘greenwashing’

ASX 200 (ASX:XJO) midday update: Aristocrat hits record high, Flight Centre sinks

5 things to watch on the ASX 200 on Thursday

ANZ (ASX:ANZ) share price on watch after revealing $129 million profit hit

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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