Update shared on 06 Nov 2025
Fair value Increased 5.19%NatWest Group's analyst price target has been upgraded from £6.05 to £6.37 per share. This reflects analysts' expectations for improved profitability and steady capital returns, despite slightly slower anticipated revenue growth.
Analyst Commentary
Recent updates from street research highlight analysts’ evolving views on NatWest Group, reflecting both confidence in the firm’s outlook and recognition of challenges that could impact performance. Below is a summary of the key bullish and bearish takeaways from the latest analyst activity.
Bullish Takeaways- Bullish analysts have raised their price targets on NatWest, citing expectations for improved profitability and consistent capital returns.
- Upgrades in price targets from multiple research houses reflect confidence in management’s execution and the bank’s ability to maintain a healthy capital position.
- The steady progression of price target increases in recent months indicates positive momentum in earnings and outlook.
- Officers at major institutions such as JPMorgan have reiterated their constructive stance, noting NatWest's progress on cost discipline and asset quality.
- Bearish analysts continue to express caution regarding the pace of revenue growth, which is expected to be slower compared to prior periods.
- Despite higher price targets, some analysts maintain neutral or sector-perform ratings and highlight lingering concerns about competition and the sustainability of margin improvements.
- Uncertainties in the broader economic environment and interest rate trajectory may limit NatWest’s growth potential, according to less optimistic assessments.
What's in the News
- Completed repurchase of 71.1 million shares for £374.29 million, representing 0.88% of total shares under the 2025 buyback program.
- Updated earnings guidance for 2025 projects income of approximately £16.3 billion and a Return on Tangible Equity above 18%, reaffirming previous outlooks.
- Reportedly seeking to sell its 85% stake in Cushon, the workplace pensions provider acquired for £144 million. This move is part of a strategic refocus under CEO Paul Thwaite. (Sky News)
- NatWest is among the potential buyers for Evelyn Partners, a wealth management firm valued at £2.5 billion, amid ongoing industry consolidation. (Financial Times)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from £6.05 to £6.37 per share.
- Discount Rate has increased marginally from 8.40% to 8.46%.
- Revenue Growth projection has fallen from 6.39% to 5.79%.
- Net Profit Margin expectation has improved from 29.36% to 30.96%.
- Future P/E Ratio has declined from 11.0x to 10.4x.
Disclaimer
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