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NS National Australia Bank Ltd (ASX: NAB) Stock prices were sluggish on Thursday.
This was despite the banking giant Presentation ACCC has given a green light to the $ 1.2 billion acquisition of Citi’s Australian consumer business.
NAB’s share price closed at $ 28.32, down 0.5%.
Is NAB’s stock price in the bizone?
Team Bellpotter He seemed happy to see the ACCC approve the acquisition.
In response to this news, brokers have repeatedly rated buys on bank stocks and priced at $ 32.00. Based on the current NAB share price, this means a potential increase of 13% over the next 12 months.
Including the full-Frank dividend of $ 1.33 per share, which brokers forecast for 2022, this potential return extends to nearly 18%.
What did the broker say?
Bell Potter states that ACCC is not involved in NAB’s plans to acquire Citi’s consumer business.
It commented as follows: “ACCC does not oppose NAB’s acquisition of Citi’s consumer business, as this transaction does not undermine competition. This is because NAB and Citi have mortgages, transactions / savings, wealth management, personal cards and credit. Even after the fact that they are duplicated in retail banking products and services such as cards. “
However, brokers emphasize that this is not the end of the approval process. The acquisition is currently based on regulatory approvals from the Federal Ministry of Finance and APRA. However, if everything goes according to plan, completion is expected in the first half of calendar year 2022.
Why does Bellpotter like NAB?
Bell Potter’s team is positive about NAB for several reasons. These include agribusiness and commercial banking functions, high quality mortgage books, and cost and growth discipline.
Overall, we believe this will allow banks to improve their return on equity (ROE) over the next few years.
Analysts commented: “Banks are currently focusing on the low-risk, capital-efficient retail, business and corporate banking market spaces of Australia and New Zealand. Our investment strategy is NAB’s (Price Revision and Pricing Discipline). We assume that (through) NIM will be improved, strict cost control will be maintained, and overall ROE will be raised to a level close to that of major banks’ peers. “
Top broker verdicts NAB (ASX: NAB) stock price
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