Macquarie found ANZ Bank’s result “credible”, but highlights another blow to the bank’s attempts to reduce costs, bowing to the need to keep up with peers by increasing its investment spend.
That said, the broker notes ANZ is the greatest benficiary of the majors of rising bond yields, and is trading at a significant valuation discount to peers, hence is offering undemanding value at this level.
Outperform retained, target rises to $30.00 from $29.50.
Sector: Banks.
Target price is $30.00.Current Price is $28.60. Difference: $1.40 – (brackets indicate current price is over target). If ANZ meets the Macquarie target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
