The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is on form on Friday.
In morning trade, the banking giant's shares are up 1% to $28.65.
This means the ANZ share price is now over 24% since the start of the year.
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Can the ANZ share price climb even higher?
One leading broker that still sees value in the ANZ share price is Bell Potter.
According to a note out of the broker this morning, its analysts have retained their buy rating and lifted their price target on its shares to $31.00.
Based on the current ANZ share price, this implies potential upside of 8.2% over the next 12 months before dividends.
And with Bell Potter estimating fully franked dividends per share of 130 cents in FY 2021 and 140 cents in FY 2022, the potential total return stretches to approximately 13%.
What did the broker say?
Bell Potter has been looking through ANZ's third quarter update and adjusted its estimates slightly to reflect it.
It said: "We have made only minor changes to expected earnings, being lower credit impairment charges in FY21 and FY22. Likewise, dividends have now been reset to 130cps in FY21 and are now climbing by 10cps per year over the next three years. The change to the price target is slight, being $1.00 upside to $31.00."
Another reason Bell Potter is positive on the ANZ share price is the potential for further capital returns.
Its analysts explained: "CET1 ratio remained strong at 12.2%, driven by capital generation of 23bp and despite being less than the interim dividend of -48bp. In the meantime, ANZ continues to drive towards APRA's minimum requirement of 10.5%. Medium-term, the buyback of $1.5bn remains in place and the bank could take up a further $1.8bn (roughly the difference between 12.2% and NAB's 11.75%)."
