One top broker has tipped a bright future for the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.
In fact, it's slapped the S&P/ASX 200 Index (ASX: XJO) banking giant's stock with a price target representing a potential 22% upside.
At the time of writing, the ANZ share price is $24, 0.42% higher than its previous close.
For context, the ASX 200 is down 0.75% right now while the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 0.54%.
So, what does top broker Credit Suisse see in the ANZ share price? Let's take a look.
Broker tips ANZ share price to take off
ANZ shares have been tipped to surge around 22% to trade at $29.25, marking a notable upside on their current price. And the broker believes rising interest rates will be the driver of such a gain.
Credit Suisse believes ANZ will be an early beneficiary of consecutive (and anticipated) interest rate hikes, my Fool college James Mickleboro reports. The broker is also said to like ANZ's exposure to business banking.
The RBA upped interest rates for a fourth consecutive month in August, bringing the official cash rate to 1.85% in a bid to tackle inflation.
Rising rates can bring both good and bad tidings for bank stocks.
It provides institutions with the chance to up rates charged on loans, thereby increasing net interest margins (NIMs) and, thus, profits. However, it can also increase the risk of foreclosures and bad debts.
But Credit Suisse isn't alone in expecting big things from the smallest 'big four' bank. Citi has slapped the ANZ share price with a target of $29, Mickleboro reported last month.
It comes after the stock plunged 21% over the first half of 2022. It's currently trading 12.06% lower year to date.
