The National Australia Bank Ltd (ASX: NAB) share price continued its positive run and pushed higher again on Tuesday.
In fact, at one stage on Tuesday, the banking giant's shares hit a 52-week high of $27.10.
When the NAB share price hit that level, it meant it was up an impressive 56% over the last six months.
Why did the NAB share price hit a 52-week high?
Investors have been buying NAB shares since the release of its first quarter update last month.
That update revealed that the bank has returned to profit growth, with cash earnings rising 1% over the prior corresponding period (which was COVID-free) to $1.65 billion.
This result was all the more impressive when you compare it to NAB's most recent quarters.
According to the update, NAB advised that its first quarter cash earnings (excluding large notable items) improved 47% on the quarterly average it achieved during the second half of FY 2020.
Another positive was that its expenses fell 1% over the prior corresponding period thanks to productivity benefits and lower restructuring related costs. Looking ahead, management advised that it continues to target FY 2021 expense growth of between 0% to 2%.
What else is supporting its shares?
Also giving the NAB share price a lift was the response to its first quarter update by brokers.
Brokers such as UBS and Credit Suisse responded by putting buy ratings and $27.00 price targets on its shares.
But the most bullish broker was Goldman Sachs. It has a conviction buy rating and $28.93 price target. Which, based on the current NAB share price of $26.65, implies potential upside of ~8.5% over the next 12 months.
And if you include the $1.10 per share fully franked dividend that Goldman expects NAB to pay in FY 2021, this potential return stretches to almost 13%.
In light of this, don't be surprised if the NAB share price hits new 52-week highs in the coming weeks.
