It has been another positive day of trade for the Australia and New Zealand Banking Group (ASX: ANZ) share price.
In afternoon trade the banking giant's shares are up 1% to $25.64. This gain means that its shares are now up a sizeable 7% since the start of the year.
Is it too late to buy shares?
I don't think it is too late to buy the shares of ANZ Bank or rivals Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC).
Even after its strong start to the year, ANZ Bank's shares are still trading on historically low multiples and provide a very generous trailing fully franked 6.2% dividend.
Furthermore, the bank has significant exposure to the business lending market, which has been tipped to shine this year.
In fact, a note out of Goldman Sachs last week revealed that its analysts now think system business lending will outperform housing lending for the first time since 2011.
It will come as no surprise then that the broker favours ANZ Bank and National Australia Bank Ltd (ASX: NAB). Both these banks are overweight with business lending and positioned perfectly to benefit from this shift.
Incidentally, Goldman has ANZ Bank on its conviction buy list with a price target of $29.58. This implies potential upside of over 15.5% or almost 22% if you factor in its dividend.
As well as its exposure to the business lending market, it is the broker's preferred pick due to opportunities for further absolute cost reductions, potential share buybacks, and its lower bad and doubtful debt charges.
Overall, I think it is hard to argue with Goldman on this recommendation and I would suggest investors consider a position in the banking giant in near future.
