Why the NAB (ASX:NAB) share price could push higher from here

The National Australia Bank Ltd (ASX: NAB) share price is having a great day today. But do better days lie ahead for ASX bank shares?
The post Why the NAB (ASX:NAB) share price could push higher from here appeared first on The Motley Fool Australia. –

woman throwing arms up in celebration whilst looking at asx share price rise on laptop computer

The National Australia Bank Ltd. (ASX: NAB) share price is having an interesting trading day today so far. At the time of writing, NAB shares are up 0.13% to $26.86 a share. Earlier in the trading day, NAB traded as high as $26.95 and as low as $26.69. Perhaps the market can’t quite decide what it wants today. 

Either way, it’s not a bad level for NAB to be at right now. At the current share price, NAB is just a touch below its 52-week high of $27.10 a share. And a long way from its 52-week low of $15.

As my Fool colleague Tristan Harrison pointed out yesterday, a lot has been going right for this ASX banking share. The banks’ financial position is strong, seeing as NAB has plenty of cash around. The Australian economy is also rebounding well, which is especially beneficial for a bank.

But according to a report in the Australian Financial Review (AFR), there could be further upside in the wings for NAB, as well as the other ASX banks.

An ASX banking tailwind for NAB?

According to the AFR report, David Cassidy, head of Australian equity strategy at Wilsons Advisory, believes that the ASX banks like NAB are set to enjoy another 6 months of share price appreciation. That would equate to another 15% upside to the current share prices of the ASX banks.

Mr Cassidy bases this prediction on a few factors. Firstly, what turned out to be over-provision that the banks undertook in response to the pandemic last year is set to wind down. That should allow banks like NAB to lend out more capital. That will be assisted by faster economic growth, which Mr Cassidy predicts will result in earnings upgrades. In turn, that should lead to higher dividend payouts. 

Reportedly, Cassidy is still wary of the Commonwealth Bank of Australia (ASX: CBA) share price on its current valuation and price-to-book ratio. But Cassidy tells the AFR that Wilsons is ‘overweight’ NAB. As well as Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ). Despite long-term issues, he sees a “more normalised price-to-book valuation being achieved, powered by what looks like a convincing cyclical recovery story” for these banks. 

NAB shareholders will certainly be hoping Mr Cassidy is right.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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.

The post Why the NAB (ASX:NAB) share price could push higher from here appeared first on The Motley Fool Australia.

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!