The ANZ Group Holdings Ltd (ASX: ANZ) share price is trading close to where it was six months ago. This is a good time to consider whether the ANZ bank share is undervalued or overvalued.
As we can see on the chart below, the ANZ share price has decreased in the last few months. It can be a good idea to look at names like ANZ when they go through a decline.
Let's see what the latest forecasts are for the ANZ share price and what this could mean for shareholders.
Image source: Getty Images
Price target
A price target is where analysts think the share price will be in within 12 months of the investment call. Sometimes the price target suggests there will be a decline and other times it suggests there could be an impressive rise.
According to CMC Invest, there have been 10 recent ratings on the ASX bank share. Of those ten, four were buys, five were holds and one was a sell.
The average price target from these 10 analysts was $35.60. That's very close to what it's actually trading at, meaning investors shouldn't look forward to any strong gains.
The most optimistic price target is $40, implying a possible rise of 12% from where it is at the time of writing.
However, the lowest price target is $30.72, which implies a possible decline of 13%.
So, the valuation looks finely balanced at the moment.
What's driving the ANZ share price?
You'd have to ask each buyer and seller of ANZ shares why they transacted at the price they did.
But, it's clear that the market still has its eyes on the ASX bank share's recent FY26 first-half performance.
ANZ reported that, excluding significant items, operating income was flat and operating expenses declined 9%, helping profit before provisions rise 12%. Underlying cash profit increased by 14%.
As you can tell from the numbers it reported, the ASX bank share has been working hard at reducing costs by reducing duplication and simplifying the organisation. ANZ said 78% of 3,500 announced roles exited the bank by the end of April 2026.
Profit growth is a key driver of the ANZ share price, so it's good to see that profit grew by double-digits in the most recent result.
However, with how its net loans and advances only grew by 1% over the six months between September 2025 and March, it's not exactly shooting the lights out.
I can see why analysts aren't excited about the valuation at the moment, so there could be better opportunities out there.
