Due to recent share price strength the broker lowers its rating to Hold from Add and the $27.50 target price is unchanged.
Morgans sees a marginal benefit in the wider context, of the agreement to purchase Citigroup’s Australian consumer business. Pre-tax cost synergies of circa -$130m pa are expected to be realised over three years, with the majority expected to be achieved in the first two years.
Target price is $27.50.Current Price is $27.32. Difference: $0.18 – (brackets indicate current price is over target). If NAB meets the Morgans target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).