The National Australia Bank Ltd (ASX: NAB) share price has continued its positive run and pushed higher again on Wednesday.
In afternoon trade the banking giant's shares are up 1.2% to $25.66.
Is it too late to buy National Australia Bank shares?
Whilst I don't believe it is too late to invest, one broker that thinks it is too late is UBS.
According to a note out of UBS this morning, its analysts have retained their sell rating and lowly $23.00 price target on the bank's shares.
This price target implies potential downside of around 10.5% for its shares over the next 12 months excluding dividends.
Speaking of which, UBS' analysts expect NAB to have to cut its dividend when it releases its half year results next week. The broker has pencilled in a 9% cut to its interim dividend, bringing it down to 90 cents per share.
UBS then expects a final dividend also of 90 cents per share but has suggested that a cut to 85 cents per share is possible if the housing market downturn accelerates and the Reserve Bank of New Zealand pushes ahead with its proposed changes to capital requirements.
Another concern that the broker has is its remediation costs. It believes that further large customer remediation costs could emerge as its review process progresses. It appears to believe that this could weigh on its shares in the near term.
What now?
If NAB were to cut its dividend to $1.80 per share in FY 2019, it would still mean its shares offer a generous dividend yield of 7%.
I think that yield makes it one of the more attractive options in the banking sector along with Australia and New Zealand Banking Group (ASX: ANZ). And whilst I would choose ANZ ahead of NAB at this stage, it is a close second in my eyes.
