The National Australia Bank Ltd (ASX: NAB) share price has been a very positive performer this year.
Since the start of the year, the banking giant's shares have risen 26%.
Throw in the fully franked 127 cents dividends it has paid, and you've got a return that smashed the benchmark.
The good news is that one leading broker still believes there's more to come.
Three reasons the NAB share price remains good value
According to a note out of Goldman Sachs, it has a buy rating and $31.15 price target on the bank's shares.
Based on the current NAB share price, this implies further upside of 8%. And if you add in the ~5% dividend yield Goldman is forecasting in 2022, this increases to 13%.
Why is it the broker positive on NAB?
There are three reasons for this positive sentiment. One of those is the progress it has already made with its cost cutting.
It explained: "We reiterate our Buy (on CL) on NAB and it remains our preferred sector exposure given: i) NAB's cost management initiatives, which seem further progressed relative to peers, have freed up investment spend to be more directed towards customer experience (50% in FY22 from 39% in FY21) as opposed to infrastructure."
Another reason the broker is positive is the bank's strong position in business banking.
Goldman commented: "ii) given NAB's position as the largest business bank, we believe it will benefit more from the continued economic recovery (management is seeing all segments in its Business & Private Bank exhibiting solid growth without sacrificing margin, and asset quality remains pristine)."
Finally, Goldman is happy with the state of the bank's balance sheet.
It concluded: "iii) good balance sheet momentum with NAB expecting at or above system growth across all divisions."
All in all, the NAB share price may be powering higher this year, but Goldman doesn't believe it is too late to get in on the action.
