Top rating for NAB offshoot

AMONG the hundreds of bank stocks covered by Wall Street analysts, a National Australia Bank unit is one of only two recommended unanimously.

AMONG the hundreds of bank stocks covered by Wall Street analysts, only two banks are ­recommended unanimously.

One of these is the National Australia Bank’s majority-owned Great Western Bancorp, according to SNL Financial’s analysis of banks with at least seven analysts.

Great Western Bancorp, which listed on the New York Stock Exchange on October 14 at $US18 per share, is up nearly 20 per cent since, last closing at $US21.55. Based in Sioux Falls, South Dakota, Great Western is a subsidiary of the NAB, which purchased the bank in 2008. The bank serves the Midwest with 162 branches in South Dakota, Iowa, Nebraska, Colorado, Arizona, Kansas and ­Missouri.

Sandler O’Neill analyst Tim O’Brien, who initially kicked off coverage with a hold rating, updated his rating to a buy and raised his price target to $US27 after the bank’s first earnings ­release in late November. Mr O’Brien expects the bank’s brand recognition and strong capital position to help its growth and profitability and said he’s become less concerned about the “overhang” from the National Australian Bank, which still owns 68.2 per cent of the bank’s outstanding common stock.

Meanwhile, among the big banks, SNL Financial said that JP Morgan Chase received the most positive recommendations from Wall Street analysts, followed by Citigroup.

Dow Jones newswires