Morgans upgrades its rating to Add from Hold in light of recent share price weakness, and after the bank announced an on-market buyback of up to $2.5bn of shares.
The broker sees potential for further capital management, especially after management said it “will continue to assess various options to return capital to shareholders.”
The analyst believes this should boost investor confidence in the strength of major bank balance sheets, as well as boost confidence in the asset quality outlook for the sector. Morgans retains its $27.50 target price.
Sector: Banks.
Target price is $27.50.Current Price is $26.20. Difference: $1.30 – (brackets indicate current price is over target). If NAB meets the Morgans target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
