Could the Bendigo and Adelaide Bank (ASX:BEN) share price hit $11 by the end of 2021?

Is this bank share in the buy zone?

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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been underperforming in 2021.

Since the start of the year, the regional bank’s shares have edged almost 1% lower to $9.38.

As a comparison, the Commonwealth Bank of Australia (ASX: CBA) share price is up 25% and the National Australia Bank Ltd (ASX: NAB) share price is up 26% over the same period.

Could the Bendigo and Adelaide Bank share price hit $11 by the end of the year?

While the Bendigo and Adelaide Bank share price has been underperforming so far this year, one leading broker sees potential for it to rebound strongly.

According to a recent note out Macquarie Group Ltd (ASX: MQG), its analysts currently have an outperform rating and $11.00 price target on the bank’s shares.

Based on the current Bendigo and Adelaide Bank share price, this implies potential upside of 17% for investors.

In addition, the broker has pencilled in a fully franked 55 cents per share in FY 2022. This represents a yield of 5.9%, stretching the total return on offer to approximately 23%.

What did the broker say?

Macquarie is positive on Bendigo and Adelaide Bank due to its growth strategy, which it feels is delivering results. And while it suspects competition may continue to weigh on margins, it appears optimistic that its strong balance sheet momentum will drive revenue growth.

All in all, the broker appears to see potential for the bank’s shares to be trading at $11.00 come the end of the year. Though, given its underperformance, it will no doubt need a catalyst.

That could potentially come at its annual general meeting next month if the bank releases a trading update at the event. Though, time will tell if that is the case.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bendigo and Adelaide Bank Limited and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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