The Australia and New Zealand Banking Group (ASX: ANZ) share price has been a positive performer on Friday.
In late morning trade the banking giant's shares are up over 1% to $27.41.
Why is the ANZ share price on the rise?
With no news out of the company, today's gain appears to have been driven by a broker note out of Morgans this morning.
According to the note, its analysts have upgraded ANZ's shares to an add rating from hold and have held firm with their $29.00 price target.
This price target implies potential upside of just under 6% for its shares over the next 12 months excluding dividends. If you include the $1.60 per share fully franked dividend that the broker expects the bank to pay in FY 2019, this potential return stretches to over 11.5%.
Why has Morgans upgraded ANZ's shares?
The broker made the move largely on valuation grounds after ANZ's shares pulled back notably over recent weeks.
But in addition to this, its analysts appear more positive on the banking sector now after recent stimulus initiatives announced by APRA. It believes these are positive for both system credit growth and asset quality.
Furthermore, with bond yields continuing to slide, the broker thinks that the big four banks are attractive options for income investors.
What about the other big four banks?
ANZ isn't the only bank that Morgans is positive on. The note also reveals that Morgans has retained its add rating and $33.00 price target on the shares of Westpac Banking Corp (ASX: WBC).
It is less positive on the other two banks, though. Its analysts have retained their hold rating and $74.00 price target on Commonwealth Bank of Australia (ASX: CBA) shares and their hold rating and $24.50 price target on the shares of National Australia Bank Ltd (ASX: NAB).
