Insights

Why this top broker thinks the ANZ (ASX:ANZ) share price is overcooked

The ANZ share price could have peaked for the time being…
The post Why this top broker thinks the ANZ (ASX:ANZ) share price is overcooked appeared first on The Motley Fool Australia. –

The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a very positive performer in 2021.

Since the start of the year, the banking giant’s shares have risen a sizeable 19.3%.

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

Where next for the ANZ share price?

Unfortunately, one leading broker believes the ANZ share price may now have peaked.

According to a note out of Citi this week, its analysts have retained their sell rating and $28.00 price target on the bank’s shares.

While this still implies potential upside of almost 2% from the current ANZ share price of $27.49, it pales in comparison to the returns on offer elsewhere.

For example, Citi currently has a buy rating and $30.00 price target on the Westpac Banking Corp (ASX: WBC) share price. That price target implies potential upside of 19% over the next 12 months for the shares of Australia’s oldest bank.

What did the broker say about ANZ?

According to its latest note, Citi has warned investors not to get excited by the prospect of rising rates in New Zealand.

Although the broker acknowledges that ANZ has the largest exposure to the New Zealand market, it doesn’t expect it to benefit as greatly from rising interest rates as the market may think.

In addition to this, the broker has recently voiced its concerns over APRA data which showed a sharp contraction in ANZ’s mortgage book. This was particularly disappointing given strong market conditions.

Citi suspects that a number of internal issues, such as manual systems, could be weighing on its performance.

As a result of these factors, the broker believes ANZ could fall short of core profit expectations in the second half. In light of this, it doesn’t appear to be in a rush to change its rating on the ANZ share price.

The post Why this top broker thinks the ANZ (ASX:ANZ) share price is overcooked 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

Westpac (ASX:WBC) and this ASX dividend share could be buys in October
ANZ (ASX:ANZ) share price slips as bank faces multimillion-dollar lawsuit
Confirmed: APRA is planning action on home loans, ASX 200 banks drop

Why these experts say the Westpac (ASX:WBC) share price could be on the way up
Why these experts think the NAB (ASX:NAB) share price is on the way up

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!