The Australia and New Zealand Banking Group (ASX: ANZ) share price has had a solid run over the last 12 months and climbed over 8%.
If you add in its dividend, the total return over the 12 months extends to approximately 14%.
Is it too late to invest?
Like Westpac Banking Corp (ASX: WBC), I think ANZ bank's shares are fully valued now and would class them as a hold.
However, one leading broker still thinks that they are a buy.
According to a note out of the equities desk at Macquarie, its analysts have retained their outperform rating and $31.50 price target on ANZ Bank's shares.
Macquarie appears to believe that the recent sale of the bank's Metrobank Card business will be a small positive and remains optimistic that the simplification of its business will create long-term value.
Should you invest?
Based on Macquarie's price target and the current share price, there is the potential for a share price return of approximately 3% over the next 12 months. This extends to 8.2% if you include the bank's fully franked trailing 5.2% dividend.
While this is a reasonably good return, I believe there are investments out there that offer far more compelling risk/rewards at present.
In light of this, I continue to believe ANZ is a hold and would suggest investors wait for an opportunity to buy in closer to the $28.00 mark.
