Should you be as excited about ANZ shares as analysts are? 

The bank is an opportunity according to multiple analysts.

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A man holds his hand under his chin as he concentrates on his laptop screen and reads about the ANZ share price

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ANZ Group Holdings Ltd (ASX: ANZ) shares have gone on a decent run in recent times. The share price is up more than 5% in a month and up over 13% in six months. After this rise, it's worth asking whether the ASX bank share is a buy or not.

ANZ is one of the most widely followed businesses on the ASX because of its size. According to the ASX, it has a market capitalisation of $77 billion.

There are numerous analysts who have an opinion on the banking giant, with the majority of those ratings being positive.

Expert views on ANZ shares

According to Factset's collation of analyst ratings, there are currently seven buy ratings on the bank. There are also four buy ratings and two sell ratings, so there are more buy recommendations than non-buy recommendations.

This has slightly reduced from a month ago, when there were eight buy ratings on the bank, but the ANZ share price has risen since then.

Recent financial performance

While the half-yearly results normally have the biggest impact on ANZ shares, the quarterly updates can also provide some interesting insights as well.

The bank recently told investors about some of its loan numbers for the period ending June 2023. For the net loans and advances, Australian retail saw 2% quarter-over-quarter growth to $307 billion, Australian commercial delivered 2% growth to $61 billion, the New Zealand division achieved 1% growth to NZ$130 billion and the institutional division saw a 1% decline to $207 billion.

Specifically on the Australian home loan portfolio, its total home loans balance increased $6 billion over the three months to $299 billion.

ANZ also said that gross impaired assets as a percentage of its gross loans and advances had increased to 0.18% as of June 2023, up from 0.17% at March 2023, and 0.16% from December 2022. However, it's still lower than 0.21% at September 2022 and 0.31% at September 2021.

The percentage of Australian and New Zealand home loans that are at least 90 days overdue is increasing, though still well below 1% of its total loans.

What's the ANZ share price valuation?

ANZ's 2023 financial year will be over in a couple of weeks, but I'm going to focus on FY24 because the future is normally more important than the past for ASX share market investors.

The current estimates on Commsec suggest that ANZ's earnings per share (EPS) is going to decline 7% in FY24 to $2.19. That would put the current ANZ share price valuation at under 12 times FY24's estimated earnings.

That profit generation could enable the ASX bank share to pay an annual dividend per share of $1.62, which would be a grossed-up dividend yield of 9%.

My own opinion is that the ANZ share price doesn't look wonderful value right now, and I'll note that it's close to its 52-week high. For me, there are plenty of other ASX shares I'd rather invest in for long-term capital growth and I'd also look elsewhere for other dividend opportunities that could deliver more passive income growth over the next few years.

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

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