ANZ Group Holdings Ltd (ASX: ANZ) shares are pushing higher again on Friday.
At the time of writing, the banking giant's shares are up 1.5% to $24.60.
This means the ANZ share price is now 4% since the start of the year.
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Can ANZ shares keep rising?
The good news is that it may not be too late to buy ANZ shares.
According to a note out of Citi this week, its analysts have retained their buy rating and $29.25 price target on the bank's shares.
This implies sizeable potential upside of 19% for investors over the next 12 months from current levels.
But the returns don't stop there! In addition, the broker has pencilled in a $1.66 per share dividend in FY 2023, up from $1.46 per share a year earlier. This represents a very attractive 6.7% dividend yield for investors to look forward to.
What did the broker say?
Citi revealed that it has promoted ANZ to its top pick in the banking sector. This has been driven largely by its exposure to institutional banking. The broker is expecting this side of ANZ's business to be a strong performer in FY 2023 thanks to the re-emergence of structural tailwinds.
In addition, Citi highlights that the company's commercial banking business is well-placed in the current environment.
As a result, it believes investors should focus less on its retail banking operations and more on its commercial and institutional banking operations. It said:
The market narrative around ANZ, is in our view, too focused on the retail banking division.
Citi isn't alone with its positive view on ANZ shares. Earlier this week, the team at Credit Suisse retained its outperform rating and $29.00 price target on the bank's shares.
