The Australian share market may be pushing higher on Tuesday, but the same cannot be said for the Australia and New Zealand Banking Group (ASX: ANZ) share price.
In afternoon trade the banking giant's share price is underperforming its peers and down 0.8% to $26.91.
As a comparison, the Commonwealth Bank of Australia (ASX: CBA) share price is up 0.8%, the National Australia Bank Ltd (ASX: NAB) share price is up 0.2%, and the Westpac Banking Corp (ASX: WBC) share price has also pushed 0.2% higher.
Why is the ANZ share price in the red today?
With no news out of the company, today's decline appears to be attributable to a broker note out of Credit Suisse this morning.
According to the note, the broker has downgraded ANZ's shares to a neutral rating from outperform and trimmed the price target on them by almost 7% to $28.00.
Credit Suisse made the move over concerns that the bank's mortgage lending may not reach an inflection point for growth until the end of FY 2019.
This is after the bank admitted that it may have been overly conservative in the implementation of some policy and process changes and advised that it was taking steps "to prudently increase volumes in the investor space."
In addition to this, the broker believes that the bank may push back capital management initiatives and not return as much as the market has been expecting. It suspects that shareholders may have to wait until FY 2020 for further initiatives.
Should you buy the dip?
Whilst I think that Credit Suisse makes some fair points, it hasn't put me off ANZ and I still see it as a share to buy. Especially given how its shares are now trading below the broker's price target.
In fact, this price target and the $1.64 per share dividend that Credit Suisse expects the bank to pay in FY 2019 implies a potential total return of over 10% from today's share price.
