The National Australia Bank Ltd (ASX: NAB) share price has had a stellar March, so can this dream run continue?
The banking giant's shares have surged 12% in a month. At the time of writing, NAB shares are trading at $32.38, up 0.87%. The S&P/ASX 200 Index (ASX: XJO) is also climbing 0.64%.
Let's take a look at the outlook for the NAB share price?
Where is the NAB share price heading?
NAB has received positive broker sentiment in recent times. The team at Bell Potter has upgraded the price target on the bank's shares to $34.50 and maintained a buy rating. The broker estimates NAB's cash earnings to increase by 3% from FY25 due to higher net interest income and "even higher other banking income".
Bell Potter is also predicting attractive dividend yields in coming years. The broker believes NAB will pay a dividend of 137 cents per share in FY22 and 135 cents in FY23.
Additionally, last night's federal budget could be a positive for banks, according to the team at Switzer. The budget includes a $420 tax cut for 10 million low- and middle-income workers and a $250 handout to pensioners and concession card holders.
Commenting in a video on NABtrade, Peter Switzer said:
If you've got a strong spending consumer, it's going to be good for our banks as well. So the momentum we've seen in the banks in recent times will also be helped by this budget.
NAB also recently announced a $2.5 billion buyback. The company is planning another buyback after the company releases half-year results on 5 May, as my Foolish colleague Aaron reported.
NAB share price snapshot
NAB shares have rocketed 25% in the past 12 months, gaining 12% year to date.
For perspective, the benchmark ASX index has surged 11% in the past year.
NAB has a market capitalisation of $104.2 billion based on its current share price.
