The National Australia Bank Ltd (ASX: NAB) share price is pushing higher again on Wednesday.
In afternoon trade, the banking giant’s shares are up almost 1% to $29.10.
NAB share price outperforms
Today’s gain by the NAB share price means it is now up almost 4.5% in October. This makes it the best performer among the big four banks.
For example, since the start of the month, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price is up almost 1%, the Commonwealth Bank of Australia (ASX: CBA) share price is up 1%, and the Westpac Banking Corp (ASX: WBC) share price is down slightly.
Is it too late to invest?
The good news is that one leading broker still believes the NAB share price can rise further.
According to a recent note out of Goldman Sachs, its analysts have a conviction buy rating and $30.84 price target on its shares.
Based on the current NAB share price, this implies potential upside of 6%. And if you include Goldman’s forecast for a fully franked dividend of $1.40 per share in FY 2022, the total potential return stretches to ~11%.
What did the broker say?
There are a few reasons why Goldman is bullish on NAB.
Our preference for NAB (Buy, on CL) is premised on i) NAB’s cost management initiatives, which seem further progressed relative to most of its peers and should drive productivity benefits sooner and free up investment spend to be directed more towards customer experience, as opposed to infrastructure; ii) given NAB’s position as the largest business bank and investment in its mortgage capability, we believe it is strongly positioned to benefit from the current recovery in both housing and commercial volumes; iii) NAB continues to effectively manage the balance between volumes and margins.”