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Investing.com - Goldman Sachs initiated coverage on National Australia Bank Ltd. (ASX:NAB) with a Sell rating and a price target of AUD38.00 on Thursday.
The investment bank cited NAB’s subdued performance over the last two years, characterized by weak earnings growth and PE expansion that has lagged behind its retail-oriented peers.
Goldman Sachs highlighted concerns about NAB’s reliance on its Business and Private Banking division, which has faced competitive pressure from rivals over the last 18 months—a trend expected to continue.
The firm also noted challenges in NAB’s Personal Banking division, stating that none of its key metrics indicate improved forward profit growth.
Goldman Sachs forecasts pre-provision operating profit growth of approximately 1% annually from FY25-27, with cash earnings estimates 2-7% below consensus, and considers NAB’s premium over ANZ and WBC as unwarranted.
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