Update shared on 25 Nov 2025
Fair value Increased 1.76%Analysts have raised their price targets for NatWest Group, with the consensus estimate moving higher from £6.37 to £6.48 per share. This reflects improved expectations around revenue growth and profit margins.
Analyst Commentary
Recent updates from various research houses highlight growing optimism regarding NatWest Group's outlook, though some lingering caution remains among analysts. The latest price target increases and rating affirmations reflect a mix of bullish expectations and measured skepticism about the company’s near-term prospects.
Bullish Takeaways- Bullish analysts have consistently increased their price targets for NatWest, indicating rising confidence in the company’s ability to deliver improved earnings performance.
- Several upward revisions to valuations point to positive sentiment around NatWest’s revenue growth trajectory and the sustainability of its profit margins.
- Further gains in price targets suggest high expectations for NatWest's execution on strategic priorities and potential to capitalize on broader sector improvements.
- The reaffirmation of Overweight and Buy ratings by major institutions signals conviction in both short-term upside and the bank’s longer-term competitive position.
- Some analysts continue to maintain more cautious ratings such as Equal Weight or Sector Perform, signaling reservations regarding outperformance compared to peers.
- Concerns persist about potential challenges in sustaining margin expansion, particularly if operating conditions become less favorable.
- The incremental nature of target price increases, rather than dramatic upward shifts, reflects limited expectations for a significant near-term rerating.
What's in the News
- NatWest Group completed a major share buyback between July 28, 2025 and October 24, 2025, repurchasing 71.1 million shares for approximately £374.29 million. This fulfills the buyback announced on July 28, 2025. (Company filing)
- The company updated its full-year 2025 guidance, projecting income excluding notable items to reach around GBP 16.3 billion and a Return on Tangible Equity greater than 18.0%. The company also reaffirmed earlier outlooks. (Company statement)
- Reports indicate NatWest is seeking buyers for Cushon, a workplace pensions provider it acquired two years ago. The CEO is pursuing a simplification drive and increased focus on core operations. (Market reports)
Valuation Changes
- Consensus Analyst Price Target has risen slightly from £6.37 to £6.48, reflecting modestly improved valuation expectations.
- Discount Rate has edged down marginally from 8.46% to 8.44%, indicating a slightly lower perceived risk profile.
- Revenue Growth forecast has increased to 6.28% from 5.79%, pointing to improved optimism around top-line performance.
- Net Profit Margin is expected to rise slightly, moving from 30.96% to 31.36%, suggesting anticipated efficiency gains.
- Future P/E (Price-to-Earnings ratio) has increased from 10.40x to 11.28x. This indicates that somewhat higher valuation multiples are expected for near-term earnings.
Disclaimer
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