Big banks shares are wildly popular with retail and institutional investors alike thanks to their perceived reliability and big fully franked dividends.
And if the analysts at investment bank Goldman Sachs are on the money it’s time to buy National Australia Bank Ltd (ASX: NAB) shares.
On December 5 they issued a new research note considering the implications of the RBNZ’s new common equity tier 1 (CET 1) capital requirements imposed on authorised banks in New Zealand.
The banks have seven years to comply with the new requirements and Goldman’s thinks NAB will only have to make ‘minor adjustments” to the way it streams capital from the NZ subsidiary to the core group. Goldman’s also believes NAB’s ‘group dividend settings’ should be ‘sustainable’.
This is a positive outcome given the tough circumstances of much higher new capital reserve requirements and helps the analysts have confidence in maintaining a ‘buy’ rating on NAB.
Goldman’s has a 12-month price target of $30.71 on NAB shares, which means shares have some 20% upside potential over the 12 months ahead.
Elsewhere it has a ‘sell’ rating on CBA (ASX: CBA) shares.
The post Goldman tips NAB shares as a ‘buy’ appeared first on Motley Fool Australia.
Our Motley Fool experts have just released a brand new FREE report, detailing 5 dirt cheap shares that you can buy today.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading near a 52-week low all while offering a 2.8% fully franked yield...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
- Man bets $221,666 on one ASX stock
- Top analysts name their top 3 ASX blue chip shares for 2019
- 3 quality dividend shares to boost your income
- NEW: Free report names top 3 ASX dividend shares to buy for 2019
- 5 Stocks for Potentially Building Wealth After 50
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019