First half cash profit (NPAT) from continuing operations was 13.7% better than Morgans’ relatively optimistic expectation. A fully franked interim dividend of 70cps also exceeded the 60cps forecast.
The broker highlights the bad debt charge and net interest margin outcomes were significantly better than consensus expectations.
Additionally, the bank is providing the market with increasing confidence of achieving the $8bn cost base target, explains the analyst. The Add rating is maintained and the target price is increased to $34.50 from $33.50.
Sector: Banks.
Target price is $34.50.Current Price is $27.90. Difference: $6.60 – (brackets indicate current price is over target). If ANZ meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges – negative figures indicate an expected loss).
