Credit Suisse downgrades to Neutral from Outperform, noting the stock has rallied 5% over the reporting season and is up 64% on a rolling year basis.
While the bank has restored operating momentum, the broker believes this is now captured in the share price.
National Australia Bank has historically traded at a -5% PE discount to the major banks compared to its current level of parity, the broker adds. Target is steady at $28.50.
Target price is $28.50.Current Price is $28.18. Difference: $0.32 – (brackets indicate current price is over target). If NAB meets the Credit Suisse target it will return approximately 1% (excluding dividends, fees and charges – negative figures indicate an expected loss).