ANZ Bank (ANZ) Share Recommendation

ANZ Bank (ANZ) has a Buy 1 share recommendation and a share price target of $33 from stock analyst UBS. The share price target was reached through DCF, SOP and comparing with International Peers. UBS believes that ANZ's investmenr in Asia may provide upside to long term earnings. Key drivers to the ANZ stock price according to UBS: "(1) Strong retail bank momentum (2) weak institutional division (3) NZ economic risk (4) Potential CEO succession uncertainty." " ANZ acquired a 19.9% stake in Shanghai Rural Commercial Bank (SRCB) for US$252m (A$328m). SRCB is the 17th largest bank in China by assets (US$17bn). This comes after 3 yrs of relationship building & due diligence. Deal finalisation is subject to reg approval. Pricing: est. 15x given Ptb of 1 to 1.2x, deal done @ 7.4% of TA (252m*5/17bn)=7.4%, 7.4%/0.5%(ROA)=15x PE." " This stake adds to ANZ's current China footprint of 180 branches via its 20% Tianjin CCBank holding. SRCB has 330 branches, > 380 ATMs, 2.5m retail cust & 5,000 staff. ANZ will focus on providing risk mgt and techl assistance through a US$5m support fund. Mgt control and influence is essential, although regulatory hurdles prevent additional equity % at this stage." "ANZ filled the mkt with its Asian expansion story #2 post-close of mkt. The deal stake is expected to be 10-20%. AMMB's market capitalisation is cUS$1.8bn & is the 5th largest banking in Malaysia."

Australia and New Zealand Banking Group Limited is listed on the Australian Stock Exchange (ASX) under stock code ANZ. You can view their investor website here. Past news and recommendations for ANZ Bank. ANZ was listed on the ASX on 30 September, 1969. ANZ is involved in general banking, mortgage and instalment lending, life insurance, property development, leasing, hire purchase and general finance, international and investment banking, investment and portfolio management and advisory services, nominee and custodian services. Charles B Goode is the current Chairman for ANZ. Read more shares news and stock recommendations for ANZ. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. Check your charts and good luck with your share trading!