ANZ Group Holdings Ltd (ASX: ANZ) shares are pushing higher again on Friday.
At the time of writing, the banking giantâs shares are up 1.5% to $24.60.
This means the ANZ share price is now 4% since the start of the year.
Can ANZ shares keep rising?
The good news is that it may not be too late to buy ANZ shares.
According to a note out of Citi this week, its analysts have retained their buy rating and $29.25 price target on the bankâs shares.
This implies sizeable potential upside of 19% for investors over the next 12 months from current levels.
But the returns donât stop there! In addition, the broker has pencilled in a $1.66 per share dividend in FY 2023, up from $1.46 per share a year earlier. This represents a very attractive 6.7% dividend yield for investors to look forward to.
What did the broker say?
Citi revealed that it has promoted ANZ to its top pick in the banking sector. This has been driven largely by its exposure to institutional banking. The broker is expecting this side of ANZâs business to be a strong performer in FY 2023 thanks to the re-emergence of structural tailwinds.
In addition, Citi highlights that the companyâs commercial banking business is well-placed in the current environment.
As a result, it believes investors should focus less on its retail banking operations and more on its commercial and institutional banking operations. It said:
The market narrative around ANZ, is in our view, too focused on the retail banking division.
Citi isn’t alone with its positive view on ANZ shares. Earlier this week, the team at Credit Suisse retained its outperform rating and $29.00 price target on the bankâs shares.
The post Buy ANZ shares now for 19% upside AND generous dividend income: broker appeared first on The Motley Fool Australia.
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More reading
- Which ASX 200 bank shares are the ones to buy in 2023?
- Top ASX dividend shares to buy in January 2023
- Top brokers name 3 ASX shares to buy today
- Can income investors bank on a 7% dividend yield from ANZ shares?
- Can ASX bank shares deliver in 2023 after higher interest rates?
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 Scott Phillips.
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