Should I buy NAB shares at $29?

The NAB share price has had a rough month. Does its new price point make it a buy?

Key points
  • NAB shares have had a dire run lately, falling 9% over the last 30 days to trade at $29.035 right now
  • That sees the stock in the buy zone, according to Goldman Sachs
  • And while Macquarie isn't so convinced, slapping the bank stock with a neutral rating, it's still tipping a 7% upside

The National Australia Bank Ltd (ASX: NAB) share price is trading in the green on Friday.

The big four bank's stock is currently gaining 0.7% to trade at $29.035. That's compared to the S&P/ASX 200 Index (ASX: XJO)'s 0.3% rise.

NAB shares have had a rough slog lately, falling 9% over the last month amid the release of its seemingly strong quarterly earnings.

But does its new share price leave NAB in the buy zone? Let's take a look.

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Are NAB shares a buy at $29?

Two top brokers agree the NAB share price likely offers an upside from here. However, they're divided over whether the stock is a buy.

Goldman Sachs is the more bullish of the pair. It's dubbed the big bank stock a buy, slapping it with a $35.42 price target ­– a potential 22% upside.

The broker noted the bank's recent "better than expected [quarterly] performance", helped along by stronger revenues and lower bad and doubtful debts. Though, that was partially offset by higher expenses.

It also noted that it believes NAB offers the best exposure to momentum in commercial volumes over housing volumes. Meanwhile, its high productivity levels over the last three years are said to have left it well-positioned to push through inflationary pressure.

Finally, its net interest margin (NIM) is tipped to peak in the second half of financial year 2023 before falling steadily.

Macquarie might also like the look of the NAB share price's current levels.

The broker's neutral on the stock but tips it to rise to $31, my Fool colleague James reported last month. That marks a potential 6.8% upside.

The ASX 200 bank share holds a top spot in the broker's income portfolio, with its dividends forecasted to grow to $1.61 this financial year.

That could leave the stock with a 5.5% dividend yield at its current share price.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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