Why did the NAB (ASX:NAB) share price smash 4-year highs today?

Analysts and market pundits are backing NAB shares to perform well in 2022.

Key points
  • NAB shares shot to multi-year highs in afternoon trading on Thursday
  • A wave of fundamental momentum rests behind the company, backed by analyst opinion and market sentiment
  • Since the start of the month, the NAB share price has gained more than 14%. 

The National Australia Bank Ltd (ASX: NAB) share price inched higher today to finish 0.69% in the green at $30.85.

NAB shares have taken off hard in 2022. They are trading at 52-week highs after a reshuffling of investor capital on the Australian markets since trading began on January 4.

Additionally, the Aussie banking giant is also trading at multi-year highs, surpassing peaks reached in 2018 and 2021. Let's take a closer look.

Two businessmen high five each other as the Optus plea to ACCC fails to impact the Telstra share price today

Image source: Getty Images

What's happening with NAB?

Investors and analysts have been constructive on the NAB share price since the bank released its first-quarter update earlier this month.

The key standout was the bank smashing estimates on cash earnings and faring better at the net interest margin level than what was expected.

Analysts were immediately onto the gravy train with bullish updates to clients. JP Morgan noted the bank has the run rate to hit 1H profit guidance of $3.2 billion.

The team at Citi was also impressed by the bank's results, with the broker's research team highlighting NAB's "peer-leading" 5% underlying growth.

It expects upgrades to consensus forecasts both in earnings and with respect to valuing the share price.

Goldman Sachs didn't shy off either and held its buy rating on the stock, valuing the company at $31.33 in the process.

The broker likes NAB among the other majors and reckons it is focused more on customer experience with its recent cost management initiatives.

Meanwhile, the team at Bell Potter agrees, baking in a juicy 4% dividend yield for investors to look forward to over the coming period. Not to mention it values the bank at $32.50 per share.

Not only that, but the bank made headlines recently regarding its Project Carbon, newly renamed Carbonplace, during yesterday's session.

Market pundits appeared to be impressed by the platform attracting so much institutional interest and the fact that Carbonplace will be trading carbon credits.

With a wave of fundamental momentum behind the company, it appears sentiment is bullish for the NAB share price.

NAB share price snapshot

The NAB share price has gained more than 14% since the start of February. It is also up around 7% this year to date and more than 8% over the past week.

In the last 12 months, NAB shares have gained more than 20%.

Motley Fool contributor Zach Bristow 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.

More on 52-Week Highs

A youthful man looks up thoughtfully at a light bulb above his head.
52-Week Highs

APA Group, QBE Insurance, Woolworths shares reach 52-week highs: Is there any upside left?

Here’s what the experts think.

Read more »

Man and woman sitting at table with the man looking a bit puzzled at his laptop.
52-Week Highs

South32, Woolworths, BHP shares reach 52-week high: Buy, sell or hold?

Brokers only rate one of these ASX shares as a buy.

Read more »

Two workers on a tablet at a mine site, with mining machinery behind them.
52-Week Highs

8 ASX mining shares hitting 52-week highs today

ASX mining ETFs QRE and OZR also reached new price peaks today.

Read more »

Ecstatic woman looking at her phone outside with her fist pumped.
52-Week Highs

Why is the ASX 200 at record highs?

Records were set this week. Here's what's powering the market.

Read more »

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today
52-Week Highs

3 ASX 200 stocks smashing new 52-week-plus highs today

These three large-cap ASX 200 shares just broke into new 52-week-plus high territory.

Read more »

Three people jumping cheerfully in clear sunny weather.
52-Week Highs

3 ASX dividend favourites are hitting 52-week highs today. Are investors getting defensive?

Investors are buying these ASX dividend shares today.

Read more »

Happy man on a supermarket trolley full of groceries with a woman standing beside him.
52-Week Highs

Are Woolworths shares still a buy at a 52-week high?

Is it too late to buy the supermarket giant's shares? Let's dig deeper into things.

Read more »

A couple in a supermarket laugh as they discuss which fruits and vegetables to buy
52-Week Highs

This ASX 200 giant just hit a 52-week high. Is it getting too expensive?

This defensive ASX 200 stock is flying this year.

Read more »