The National Australia Bank Ltd (ASX: NAB) share price has lifted in the last month, but could it go higher?
The major bank's share price has jumped 12% in the past month. In Wednesday's trade, NAB's shares fell 0.58%.
Let's examine the outlook for the NAB share price.
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What is ahead?
The ASX bank share will report important financial results next week, but what are analysts predicting?
Morgan Stanley analyst Richard Wiles is forecasting a "sweet spot" for the bank with "robust volume growth, margins tracking ahead of consensus, strong credit quality and healthy capital".
He is predicting an underlying cash profit of $1.8 billion with 5% revenue growth and 4% expense growth.
In comments cited by The Australian, he added:
Any commentary on the impact of higher rates and the margin outlook should be positive.
Sharing his thoughts on his outlook for the NAB share price in light of these forecast results, Wiles said:
The current share price reflects this and factors in a 15 per cent probability of recession in 2023, so we stay equal weight.
The Reserve Bank of Australia (RBA) boosted the official cash rate by 0.5% on Tuesday, as my Foolish colleague Bernd reported. Australia's official cash rate is now 1.85%.
NAB is due to provide its third-quarter trading update on 9 August.
Share price snapshot
The NAB share price has lifted 17% in the past year and nearly 7% year to date.
For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) has descended more than 3% in the past year.
NAB has a market capitalisation of nearly $98 billion based on its current share price.
