Should investors buy NAB stock price at its 52-week high?


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Shares in National Australia Bank Ltd. (ASX:NAB) ended trading Thursday at $32.85 apiece in afternoon trade.

NAB shares have hit 52-week highs in recent months after hitting lows in December, February and then again in March.

Over the past month, its stock price has jumped 10% and is now up 14% year-to-date.

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Is NAB a buy?

Morgan Stanley analysts recently noted that NAB may raise its cost forecast for FY22, but that could very well be offset if the bank hits its revenue growth targets.

He is neutral on NAB shares and values ​​the company at $31.50 apiece, slightly below the consensus valuation of $32.46 per share.

Bloomberg analysts believe there could be more to the NAB story if you dig a little deeper. They rank NAB as Australia’s “best green lender” after committing to an “A$70 billion environmental finance target and A$56 billion committed finance”.

“It is also Australia’s leading renewable energy lender and the carbon intensity of its lending is well below its peers. It met its 2025 emissions target last year and the disclosure is among the best in Australian finance.

This is something worth thinking about, especially for ESG and/or sustainability conscious investors.

Meanwhile, JP Morgan analysts are bullish on the bank and believe it should outperform its peers in revenue growth and capital management this year.

“We have an overweight recommendation on NAB reflecting stronger earnings growth prospects than peers, likely healthy cost control and continued capital management,” he said in a recent note.

“The stronger revenue profile reflects NAB’s tilt toward small business banking, which should insulate it from ROE pressures in retail banking, as well as the strong execution of its market-leading SME franchise. market where it continues to take market share,” he added.

“While we believe there is potential for NAB to deviate from its cost targets, this is already factored into our guidance and we continue to see NAB’s pre-provision earnings growth outpacing its peers.”

He rates NAB as a buy and values ​​the bank at $33.50 per share, slightly above consensus.

Over the past 12 months, NAB’s stock price has recorded gains and is up 23% in that time after a period of brutal volatility.


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