NAB Keeps Bulls Despite Softer Near-Term Outlook

Dow Jones
08/18

0419 GMT - National Australia Bank is still a buy at UBS despite a softening in the lender's near-term profit outlook. Analysts at the investment bank trim their full-year cash profit forecast by 2.4% on slightly lower margin and volume expectations, but maintain a buy rating on the stock. They tell clients in a note that NAB's large relative exposure to business banking remains core to their thesis. They say that the 5% share-price drop that greeted the lender's third-quarter update was overdone, and that they see little evidence so far of a marked deterioration in asset quality or losses. Target price falls 3.0% to 48.50 Australian dollars. Shares are down 0.9% at A$39.11.

 

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