Should investors buy the NAB share price at its 52-week highs?

NAB shares are trading in an ascending channel.

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Key points

  • NAB shares have spiked hard in 2022 and are now up 14% YTD 
  • Many brokers are constructive on the bank and reckon that it could be a buy, whilst others are happy on the sidelines 
  • In the last 12 months, the NAB share price has held gains and is up 23% in that time 

Shares in National Australia Bank Ltd. (ASX: NAB) finished trading on Thursday at $32.85 apiece in afternoon trade.

NAB shares have thrust to 52-week highs in recent months after surging off low points in December, February and then again in March.

In the past month, its share price has jumped 10% and is now up 14% for the year to date.

TradingView Chart

Is NAB a buy?

Analysts at Morgan Stanley recently noted that NAB could increase its FY22 cost guidance, but that could very well be offset if the bank meets its revenue growth targets.

It is neutral on NAB shares and values the company at $31.50 apiece, slightly below the consensus valuation of $32.46 per share.

Analysts at Bloomberg reckon there could be more to the NAB story when digging a little deeper. They rank NAB as Australia’s “top green lender” after committing to an “environmental-finance target of A$70 billion and committed funding of A$56 billion.”

“It’s also Australia’s leading renewables lender and its lending carbon-intensity is well below peers. It hit its 2025 emission target last year and disclosure is among the best of Australian financials.”

That’s something worth thinking about particularly for ESG and/or sustainability minded investors.

Meanwhile, JP Morgan analysts are bullish on the bank and reckon it is set to outstrip peers in revenue growth and capital management this year.

“We have an overweight recommendation on NAB reflecting stronger-than-peer revenue growth prospects, likely sound cost control, and ongoing capital management,” it said in a recent note.

“The stronger revenue profile reflects NAB’s tilt towards small business banking, which should insulate it from ROE pressures in retail banking, as well as strong execution in its market leading SME franchise where it continues to take market share,” it added.

“While we think it possible that NAB walks away from its cost targets, this is already factored into our forecasts and still we see NAB’s pre-provision profit growth outstripping peers.”

It rates NAB a buy and values the bank at $33.50 per share, slightly above consensus.

In the last 12 months, the NAB share price has held gains and is up 23% in that time after a period of rough volatility.

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.

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