Against a backdrop of geopolitical uncertainty, UBS expects the banks to outperform given their defensive qualities and relative safe-haven status. It’s also felt the market has not fully incorporated the impact of net interest margin (NIM) expansion from interest rate increases.
The broker likes National Australia with its potential for strong volume growth. The Buy rating and $30.50 target are unchanged. Meanwhile, Westpac Bank ((WBC)) is the analyst’s preferred exposure of the major banks.
Sector: Banks.
Target price is $30.50.Current Price is $28.94. Difference: $1.56 – (brackets indicate current price is over target). If NAB meets the UBS target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
