Jefferies lifts National Australia Bank PT with focus on cost outlook

National Australia Bank

Tue 20:57

** Analysts at Jefferies raise price target for National Australia Bank NAB.AX to A$46.08 from A$45.71, reiterate "buy" rating
** Jefferies increases FY26 EPS estimate for Australia's top business lender by 1%, lowers EPS outlook by 2% for FY27
** Brokerage says during the annual results, the focus will be on the FY27 cost outlook and the timing of benefits from a nearly 6% workforce reduction and signs of further SME deterioration 
** Forecasts H2 NIM flat for NAB, compared with the previous half, signalling an improvement in Q4
** Jefferies expect about 3-4% gross savings from the 6% job cut, reducing estimated recurring cost growth in FY27 to nearly 2%
** NAB down 7.3% YTD

 (Reporting by Keshav Singh Chundawat in Bengaluru)
 ((Keshav.singhchundawat@thomsonreuters.com))