By 2026, the ANZ share price could turn $5,000 into…

The banking giant released its latest strategy plans earlier this week.

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Key points

  • ANZ shares have risen 9.85% over the past month to $36.29, driven by the announcement of its ANZ 2030 strategy, which focuses on customer experience, operational simplicity, and investments in its banking operations.
  • Macquarie has a neutral rating with a $34 target, reflecting a potential 6.3% downside, voicing concerns about the bank's ambitious goals and potential risks of revenue underperformance amid restructuring plans, including 3,500 job cuts by 2026.
  • Analyst consensus is divided, with an average target price of $32.27 suggesting an 11.2% downside, but a potential 10.87% upside if ANZ achieves a $40.30 price, highlighting uncertainty about the bank's future valuation by investors.

ANZ Group Holdings Ltd (ASX: ANZ) shares are 1.06% higher at the time of writing on Wednesday morning and trading at $36.29 a piece. The bank's shares have increased by 9.85% over the past month and are currently 16.34% higher than at this time last year.

Earlier this week, the banking giant announced its priorities and strategic focus for the next five years to 2030. ANZ said its ANZ 2030 strategy will focus on customer experiences, simplicity, reliance, and delivering value to enhance growth and operational efficiency.

The bank also plans to make significant investments in its mortgage salesforce and Commercial Bankers Academy to bolster its retail and commercial banking operations in Australia.

The restructuring plan is part of the bank's plans to cut 3,500 jobs by September 2026. 

What do brokers think of ANZ shares?

Broker forecasts are very varied – some are optimistic, while others are more cautious or even negative on their outlook for ANZ shares over the next 12 months.

Macquarie analysts confirmed their neutral rating on ANZ shares yesterday and raised their target price to $34.00, up from $33.00 previously. But based on the current share price, that represents a potential downside of 6.3% over the next 12 months.

The broker said it is impressed by the bank's strategy update but has concerns about whether the plans can be achieved.

The broker said it will give the bank the "benefit of the doubt for now", but said the aggressive cost-out programs have many challenges.

"As peers invest in their capabilities and look to grow share, the key risk for ANZ is revenue underperformance and market share losses," the broker told investors.

Earlier this month, the team at Morgans upgraded its outlook on the banking giant's shares to neutral (from sell) and trimmed its price target to $29.24. That's a potential 19.4% downside for investors.

TradingView data shows that analysts are split about the outlook for ANZ shares. Out of 16 analysts, 4 have a buy or strong buy rating, 9 have a hold rating, and 3 have a sell or strong sell rating on the shares.

The average target price is $32.27 (which represents a potential 11.2% downside at the time of writing) and the maximum is $40.30 (which represents a potential 10.87% upside).

What will ANZ shares be worth in 2026?

Based on the average target price using the data above, investors who buy $5,000 in shares today could see their investment drop to $4,440 over the next 12 months.

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. 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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