Morgan Stanley has increased its price target for ANZ from $29.70 to $30.50, anticipating a significant transformation agenda and new medium-term financial targets from the major bank. ANZ is one of Australia’s largest banks, providing a range of financial products and services to retail, commercial, and institutional customers. It operates across Australia, New Zealand, and the Asia Pacific region.
Despite the positive price target adjustment, the broker downgraded its earnings per share forecasts by 2.5 per cent for fiscal year 2025. This revision reflects the penalties recently announced by the corporate regulator. However, Morgan Stanley upgraded earnings per share forecasts for the subsequent two years, driven by expectations of improved margins.
Equities analyst Richard Wiles lowered the dividend estimate by 12 per cent. These adjustments reflect a cautious outlook regarding near-term profitability in light of regulatory actions, balanced by optimism for future margin expansion.
On Friday, ANZ shares experienced a slight increase, edging up 0.1 per cent to close at $32.895. This movement suggests a tempered market reaction to the combination of a higher price target and revised earnings and dividend estimates.
