The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price may have smashed the market in 2021 with its 19% gain, but one leading broker believes there's more to come.
Who is bullish on the ANZ share price?
According to a recent note out of Morgans, its analysts have retained their add rating and $31.00 price target on the banking giant's shares.
Based on the current ANZ share price of $27.40, this implies potential upside of 13% for investors over the next 12 months.
But it gets better! Morgans is forecasting a fully franked $1.47 per share dividend in FY 2022. If we add this into the equation, the total return on offer here is approximately 18.5%.
What did the broker say?
One of the reasons that Morgans is positive on the ANZ share price is the bank's exposure to business and institutional banking. It believes structural tailwinds are building for the latter.
Morgans commented: "With increasing expectations for global rate rises and steepening yield curves, the outlook for the Markets business – which benefits from volatility in interest rate and foreign exchange markets – is improving."
The broker also notes that the Institutional business is well-placed to benefit from the decarbonisation trend.
Its analysts explained: "The two other key businesses within the Institutional division are Corporate Finance and Trade. ANZ sees structural tailwinds for these two businesses over the medium term as a result of the transition to a low carbon global economy. We therefore believe it is conceivable that revenue growth of the Institutional division will outperform ANZ's other divisions over the next 2-3 years."
All in all, this could make the bank's shares worth considering right now even though they have performed so strongly in 2021.
