NAB - Morgan Stanley rates the stock as Equal-weight
PUBLISHED
2021-11-10
Content
Following FY21 results, Morgan Stanley makes only minor changes to its forecasts for National Australia Bank and retains its Equal-Weight rating and target price of $27.90. Industry view: In-Line.
Second half cash profit was a -1% miss versus the broker's estimate though pre-provision profit missed by around -5.5%.
The analyst upgrades the FY22 loan forecast by around 3%,and now assumes Australian housing and non-housing loan growth of circa 5.5% and 6%, respectively. Expense growth was within guidance in FY21 and management expects costs to be "broadly flat" in FY22.
Sector: Banks.
Target price is $27.90.Current Price is $28.89. Difference: ($0.99) - (brackets indicate current price is over target). If NAB meets the Morgan Stanley target it will return approximately -4% (excluding dividends, fees and charges - negative figures indicate an expected loss).