ANZ Group Holdings Ltd (ASX: ANZ) shares have rallied more than 24% this year and are trading near their former highs.
Shares in the banking major are currently swapping hands at $32.34 apiece, just shy of their six-month high of $32.57 reached last week.
While this places the ASX bank stock in a good position, the question is: Are ANZ shares a buy at these levels, or has the rally already priced in all the good news? Let's see what the experts think.
What's driving ANZ shares?
ANZ shares have been buoyed by a broader rally in ASX 200 bank stocks, driven by improving macroeconomic conditions.
A rebound in home loan demand — particularly a 30% increase in investor loans over the past year — has provided a big tailwind for the sector. More loans equal more money for banks.
ANZ's acquisition of Suncorp Bank has also started to bear fruit, with management noting solid customer acquisition and growth in home loans and deposits.
Investors responded well to the improving conditions, with the stock closing at its highest mark in six months last week.
But markets, just like Shakira's hips, don't lie.
ANZ's FY24 earnings painted a mixed picture, leading to a sharp 4% drop in a single session shortly afterwards.
The bank reported net profit of $6.5 billion, down 8% on FY23. Cash profit also fell 9% to $6.7 billion, primarily due to a 2% decline in revenue and a 4% rise in expenses.
CEO Shayne Elliott attributed the dip to stiff competition in the mortgage market and inflationary pressures. This could impact ANZ shares.
Despite these challenges, ANZ delivered its second-strongest revenue performance on record.
The bank declared a final dividend of 83 cents per share, 70% franked, bringing the total for the year to $1.66 per share.
What are brokers saying about ANZ shares?
Not all analysts are enthusiastic about ANZ shares at these lofty levels.
Morgans recently downgraded its recommendation on ANZ shares to a sell rating, setting a 12-month price target of $25.29.
The broker cited concerns about the bank's valuation and potential headwinds in the competitive mortgage market.
Goldman Sachs, on the other hand, has taken a more neutral stance, noting that ANZ's FY24 results were broadly in line with expectations.
Meanwhile, consensus rates ANZ shares a hold according to CommSec.
Foolish takeout
ANZ shares have rallied alongside the broader banking sector in 2024 and are trading near their six-month highs.
Whether or not this will continue is a discussion between time and fate (and ANZ management's execution). Brokers are neutral on the stock on aggregate.
In the last 12 months, the ANZ share price is up 34%.
