The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price was a positive performer in March.
Over the period, the banking giant's shares rose by a sizeable 6.1%.
Image source: Getty Images
Why did the ANZ share price storm higher in March?
The catalyst for the rise in the ANZ share price last month was commentary out of both the US Federal Reserve and the Reserve Bank of Australia.
Hawkish comments from both central banks have sparked hopes that interest rates could be rising quicker than previously expected to combat rising inflation.
This would be good news for ANZ and the rest of the banks as it would be a boost to their interest income, which has been under significant pressure with rates close to zero.
Can its shares go higher?
The good news is that one leading broker still sees value in the ANZ share price even after its solid gain in March.
A recent note out of Goldman Sachs reveals that its analysts have a buy rating and $30.84 price target on the bank's shares.
Based on the current ANZ share price of $27.18, this implies potential upside of 13.5% for investors over the next 12 months.
In addition, the broker is expecting fully franked dividend yields of ~5.4% and ~5.7% in FY 2022 and FY 2023, respectively. This increases its potential 12-month total return to approximately 19%.
Goldman commented: "Despite the weak [Q1] update we stay Buy rated on ANZ given i) ANZ appears to be on track to reach its FY23 cost target of A$8 bn, which should alleviate some of its revenue pressures, ii) ANZ is making progress to improve systems and processes for simple home loans with application times now in line with major bank peers, iii) ANZ is considering increasing the size of the current on-market buy-back ($1.5 billion announced in Jul-21), and iv) the stock is trading more than one standard deviation cheaper versus the sector on PPOP multiples."
