Morningstar raises ANZ Group's fair value on cost savings plan

** Analysts at Morningstar lift fair value estimate for Australia's ANZ Group ANZ by 3% to A$33; say shares modestly overvalued

** Morningstar says ANZ's FY26 cost savings of A$800 million ($521.20 million) that include 3,500 job cuts, team restructuring and exiting non-core businesses announced in September, are bigger than it expected

** ANZ's decision to cease remaining A$800 million of buyback and a 1.5% discount on next two dividends estimated to add nearly 50 bps to CET1 ratio - Morningstar

** Investment research firm lowers FY26 home loan growth guidance to 1.5% from 3.5%, as Australia's fourth-largest bank ends cashback offers

** Adds, tough to achieve its target of 13% return on tangible equity by 2030 and is not expected to improve beyond 12%; earnings growth to be more dependent on strong revenue growth

** ANZ up 26.2% YTD, as of last close

($1 = 1.5349 Australian dollars)