ANZ (ASX:ANZ) share price lower amid credit card class action

The lawyers are circling ANZ again…

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is trading lower on Wednesday.

At the time of writing, the banking giant’s shares are down 0.9% to $26.46.

This makes it the worst performer among the big four this morning.

What’s happening?

This morning ANZ acknowledged that class action proceedings have been filed by Phi Finney McDonald in the Federal Court of Australia against it.

According to the release, the bank understands that the class action covers certain credit card holders in the period from 1 July 2010 to 1 January 2019.

Furthermore, the class action is believed to allege that ANZ’s credit card contracts were unfair, and contravened the Australian Securities and Investments Commission Act.

ANZ has stated that it will review the claim and intends to provide any updates as and when required.

No details on the amount of damages being sought has been revealed.

Is the ANZ share price in the buy zone?

One leading broker that sees a lot of value in the ANZ share price at the current level is Goldman Sachs.

Its analysts currently have a buy rating and $31.82 price target on its shares. This implies potential upside of 20% for investors over the next 12 months.

Goldman commented: “We reiterate our Buy on ANZ given: ANZ appears to be on track to reach its FY23 cost target of A$8bn, which should alleviate some of its revenue pressures; management notes capacity to drive better housing volumes has been expanded, and volume growth is evident across other parts of the balance sheet; its Markets income has exhibited a positive divergence in trend versus peers, which ANZ attributes to a more diversified business that it expects can be sustained; n the stock is trading more than one standard deviation cheap versus the sector on PPOP multiples (27% discount vs. 11% 15-year average discount).”

The ANZ share price is up 15% in 2021.

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 has no position in any of the stocks mentioned. 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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