Is the NAB share price a buy ahead of next week’s quarterly update?

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.

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.

The post Is the NAB share price a buy ahead of next week’s quarterly update? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How are ASX 200 bank shares responding to the RBA rate increase?
• ‘The great reallocation’: The $4 trillion financing opportunity in front of NAB
• Experts say these ASX dividend shares are buys right now
• ‘Raises a whole lot of issues’: Which ASX 200 banks are still funding new fossil fuel projects?
• The NAB share price is up 20% from its YTD low. Is now the time to buy?

Motley Fool contributor Monica O’Shea 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 Scott Phillips.

from The Motley Fool Australia https://ift.tt/XGqw2eB