Morgans sees potential for further capital management by ANZ Bank, in the wake of the announced on-market share buyback program of up to $1.5bn, commencing in August. Morgans retains its Add rating and $34.50 target.
The broker suggests the announcement is expected to provide investors with increased confidence in the strength of major bank balance sheets, and the potential for capital management.
Target price is $34.50.Current Price is $27.63. Difference: $6.87 – (brackets indicate current price is over target). If ANZ meets the Morgans target it will return approximately 20% (excluding dividends, fees and charges – negative figures indicate an expected loss).