Morgan Stanley expects both ANZ Bank and Suncorp Group ((SUN)) will appeal the ACCC decision to not authorise ANZ Bank's acquisition of Suncorp's banking arm.

Despite this view, the broker feels the strategic rationale and financial implications of the acquisition are not compelling, and the decision provides near-term share price support for ANZ. 

Should the transaction not proceed there's considered potential for ANZ to announce a buyback of more than $4bn.

The broker's Equal-weight rating and $25.20 target are unchanged for ANZ Bank. Industry View: In-Line.

Sector: Banks.

Target price is $25.20.Current Price is $25.45. Difference: ($0.25) - (brackets indicate current price is over target). If ANZ meets the Morgan Stanley target it will return approximately -1% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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