Bell Potter strategist Paul Basha has lifted ANZ Banking Group (ASX:ANZBY) to Overweight in his model portfolio, funded by larger underweights in Westpac, NAB and CBA, keeping his overall bank position Underweight.
He says ANZ, now a 5% holding, offers the best relative value in the sector, with its cost-out focus, strong capital and lower starting valuation providing the most upside.
Expense control dominated reporting season and ANZ was the standout, guiding to FY26 cost deflation while CBA and NAB face inflation and higher investment spend