Macquarie notes consensus expectations around rising rates haven’t changed, and assuming a resolution in Ukraine and Europe can avoid stagflation, banks are expected to outperform the industrials.
The broker estimates FY22 margin benefits will be skewed to National Australia Bank and ANZ Bank ((ANZ)) among the majors.
The Outperform rating and $32.50 target for National Australia Bank are maintained.
Target price is $32.50.Current Price is $29.99. Difference: $2.51 – (brackets indicate current price is over target). If NAB meets the Macquarie target it will return approximately 8% (excluding dividends, fees and charges – negative figures indicate an expected loss).