National Australia Bank (NAB) Update

Submitted by Craig Strzelecki on 16 April, 2007 - 18:53

National Australian Bank (NAB) has a reitereated Buy rating from sharemarket analyst Citigroup Investment Research. The analyst anticipates a surprise positive result in 1H07. "Underpromise and overdeliver" is overrated: while peer banks provide periodic updates of their progress against performance targets, NAB gives investors close to zero in terms of guidance. The analyst believes that the relative lack of news flow has constrained its stock price performance. The analyst sees solid momentum in business lending, and an accelerating growth story in the UK. They should underpin the 1H07 result. However structural impediments will remain, while management has taken steps to address issues, the National Australia Bank (NAB) wealth management and institutional businesses are likely to remain less profitable than peer businesses (on ROA). Resumption of buyback will support stock price; the bank postponed its buying in March 2007. Post the result the bank will again resume buying, providing additional support over the next few months.

National Australia Bank Limited is listed on the Australian Stock Exchange (ASX) under stock code NAB. You can view their investor website here. John Stewart is the CEO of National Australia Bank and Michael Chaney the Chairman. The company offers Banking, financial and related services. NAB was listed on the ASX on 1 January, 1974. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade NAB. Check your charts and good luck with your share trading!