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What does the future look like for the ANZ (ASX:ANZ) share price?

The bank is currently having a good time.
The post What does the future look like for the ANZ (ASX:ANZ) share price? appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has had a great year thus far.

Shares in the banking giant have soared more than 21% since the start of the year.

By comparison, the S&P/ASX 200 Index (ASX: XJO) has only managed to claw 12.5% higher in 2021.

It’s not very common to see the share price of a big bank like ANZ outperforming the broader index.

So, what is the outlook for the ANZ share price?

Can the ANZ share price keep rising?

According to a leading broker, investors can expect more upside for shares in ANZ.

A recent note published by Morgan’s painted a bullish outlook, with analysts having an add rating and $34.50 price target on the bank’s shares.

Analysts cited ANZ’s attractive valuation and cost reduction plans for the positive outlook.

Given its strong capital position, analysts also forecast ANZ to pay out a full franked dividend of $1.65 per share in FY22.

In addition, the broker spruiked ANZ as potentially being the best option among major Aussie banks right now.

On the contrary, some experts have flagged a more bearish outlook for the ANZ share price.

According to the commentary, moderation in volume and housing growth could slow near-term growth prospects for the big banks.

Snapshot of the ANZ share price

There are several catalysts that appear to have helped propel the ANZ share price higher this year.

In May, ANZ reported a strong first-half report for FY21.

The report highlighted a 45% increase in statutory profit after tax of $2.94 billion.

Continuing operations cash profit also increased 28% for the first half to $2.99 billion.

ANZ has also highlighted improved credit conditions which resulted in the release of almost $500 million during the half.

In its recent business update for the third quarter, the banking giant noted that its CET1 ratio came in at 12.2%, a slight reduction from the 12.4% recorded in the previous period. 

With its strong capital position and cost reductions, ANZ announced its intention to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The bank’s buyback is also expected to reduce ANZ’s CET1 ratio by a further 35 basis points.

The ANZ share price closed yesterday’s trading session slightly lower at $27.61.

The post What does the future look like for the ANZ (ASX:ANZ) share price? appeared first on The Motley Fool Australia.

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

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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.

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*Returns as of August 16th 2021

More reading

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Motley Fool contributor Nikhil Gangaram 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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