This pundit thinks you should buy Australia and New Zealand Banking Group Ltd

Citigroup has upgraded Australia and New Zealand Banking Group Ltd (ASX: ANZ) to buy from neutral after the stock has seen share price declines of around 6% in the last 12-months, sitting down 0.7% at the time of writing to $26.65, from $31.70 at this time last year.

The Citi broker believes the ANZ will be the one bank able to shift its dividend pay-out higher – to 80% by the second half of 2020 from 65% currently.

The broker said the CET1 ratio is forecast to remain above the 10.5% target despite around $7 billion in share buybacks and has maintained the price target of $30.

Other big bank names Commonwealth Bank of Australia (ASX: CBA)National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC) all followed ANZ down today, with Commonwealth Bank shares slipping to $73.29 at the time of writing, National Australia Bank down 0.6% to $28.65 and Westpac dropping 0.3% to $28.96.

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Motley Fool contributor Carin Pickworth owns shares of Australia & New Zealand Banking Group Limited, Commonwealth Bank of Australia, and National Australia Bank Limited. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. 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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