The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a strong performer in 2021.
Since the start of the year, the banking giant's shares have risen 21.5%.
This is almost double the return of the S&P/ASX 200 Index (ASX: XJO) over the same period.
Can the ANZ share price keep on rising?
According to one leading broker, the ANZ share price is still great value despite its strong rise in 2021.
A recent note out of Morgans reveals that its analysts have an add rating and $34.50 price target on the banking giant's shares.
Based on the latest ANZ share price of $28.00, this will mean potential upside of 23% over the next 12 months before dividends.
And with Morgans forecasting dividends of $1.45 per share in FY 2021 and $1.65 per share in FY 2022, the potential return stretches to over 28% including them.
What did the broker say?
ANZ is Morgans' top pick in the banking sector and believes it offers great value for money. It also believes the bank is well-placed to benefit from a number of industry tailwinds.
Earlier this month, Morgans commented: "We believe ANZ is the most compelling of the major banks on a valuation basis. We expect ANZ to benefit the most of the major banks from the tailwinds currently in place for treasury and markets income. We expect ANZ to continue to focus on absolute cost reduction over the medium term. ANZ has de-risked its loan book over recent years –particularly its institutional loan book –such that the quality of its loan book has increased."
So while the ANZ share price has smashed the market in 2021, this broker doesn't believe the gains are over just yet. This could make it a top option for investors that don't have exposure to the sector.
