The NAB (ASX:NAB) share price is up 7% in just two weeks

This banking giant's shares are up strongly this month…

The National Australia Bank Ltd (ASX: NAB) share price has been a positive performer over the last couple of weeks.

During this time, the banking giant's shares have risen almost 7%.

This means the NAB share price is now up 21% since the start of the year.

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

Image source: Getty Images

Why is the NAB share price up 7% in two weeks?

The main catalyst for the rise in the NAB share price over the last couple of weeks was the release of the bank's third quarter update.

Last week, NAB released its results for the three months ended 30 June and revealed an unaudited statutory net profit of $1.65 billion and unaudited cash earnings of $1.70 billion.

While this was broadly in line with the average quarterly profit and cash earnings that it achieved during the first half of FY 2021, it was ahead of the market's expectations.

Goldman Sachs commented: "NAB has released its 3Q21 trading update, with unaudited cash earnings from continuing operations of A$1.70 bn, up 1% on the previous period average, run-rating 11% ahead of what is implied by our current 2H21E forecasts."

Elsewhere, Bell Potter notes that its statutory net profit was ahead of its estimate of $1.59 billion and its cash earnings were $100 million ahead of its estimate of $1.6 billion.

Where next for the NAB share price?

While Bell Potter is sitting on the fence with a hold rating and improved price target of $28.50, Goldman Sachs is a little more positive.

Its note reveals that the broker has retained its conviction buy rating and lifted its price target to $30.62.

Based on the current NAB share price of $27.72, this implies potential upside of 10.5% over the next 12 months before dividends. This stretches to over 15% if you include them.

All in all, while NAB shares have been on fire over the last couple of weeks, it may not be too late to invest.

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.

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