Could the NAB share price to hit $30 before the end of 2021?

Where next for the NAB share price?
The post Could the NAB share price to hit $30 before the end of 2021? appeared first on The Motley Fool Australia. –

The National Australia Bank Ltd (ASX: NAB) share price was on form last week.

The banking giant’s shares rose almost 2% over the five days to end the period at $28.38.

This means the NAB share price is now up 24% since the start of the year.

Could the NAB share price hit $30.00 before the end of the year?

One leading broker that believes the NAB share price could rise further from here is Goldman Sachs.

A note out of the investment bank last week reveals that its analysts have retained their conviction buy rating and $30.62 price target on the bank’s shares.

Based on the current NAB share price, this implies potential upside of 7.9% over the next 12 months.

In addition, the broker is forecasting a fully franked $1.40 per share dividend in FY 2022. This represents a 4.9% dividend yield, which brings the total potential return to almost 13%.

Based on this, Goldman appears to believe there’s potential for the NAB share price to hit $30.00 by the end of the year.

What did the broker say?

NAB is the broker’s top pick among the major banks for a number of reasons. One of those is its cost management initiatives. It recently explained:

“i) NAB’s cost management initiatives, which seem further progressed relative to most of its peers, should drive productivity benefits sooner and free up investment spend to be directed more towards customer experience, as opposed to infrastructure (3Q21 update shows NAB is tracking well against this).”

Goldman also likes NAB due to its strong position in business banking. Its analysts commented:

“ii) given NAB’s position as the largest business bank and investment in its mortgage capability, we believe it is strongly positioned to benefit from the current recovery in both housing and commercial volumes (3Q21 update showed continued volume momentum).”

Finally, Goldman has been pleased with the way it manages its margins. It said:

“iii) NAB continues to effectively manage the balance between volumes and margins as well as any peer.”

The post Could the NAB share price to hit $30 before the end of 2021? appeared first on The Motley Fool Australia.

Should you invest $1,000 in NAB right now?

Before you consider NAB, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and NAB wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

How did ASX bank shares perform in the last quarter?

Westpac and other ASX 200 banks face renewed shareholder pressure over climate policies

Is the NAB (ASX:NAB) share price a buy?
5 things to watch on the ASX 200 on Thursday

What happened for the NAB (ASX:NAB) share price in the FY22 first quarter?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!