Update shared on29 Aug 2025
Fair value Increased 1.23%NatWest Group’s consensus price target has been modestly raised to £5.91, reflecting analyst confidence in improved earnings visibility, stable UK economic conditions, operational efficiency, and capital return potential.
Analyst Commentary
- Bullish analysts cite improved earnings visibility and confidence in NatWest’s underlying profitability as drivers for higher price targets.
- Upward adjustments reflect expectations for stable UK economic conditions and supportive interest rate environment benefiting net interest margins.
- Several analysts point to NatWest’s capital return potential and robust balance sheet as factors supporting valuation uplifts.
- JPMorgan’s increased target is underpinned by anticipated improvements in operational efficiency and continued cost discipline.
- Minor downward revisions are attributed to slightly reduced growth forecasts and ongoing regulatory uncertainties.
What's in the News
- NatWest is reportedly being considered as a potential buyer for Evelyn Partners, a PE-backed wealth firm undergoing restructuring to attract suitors, with Permira and Warburg Pincus seeking £2.5bn.
- NatWest commenced a share buyback program to repurchase up to 10% of its issued share capital, initiating up to £750 million worth of share repurchases, with shares to be cancelled.
- Announced an interim dividend of £768 million (9.5p per share) for H1 2025, payable in September.
- Entered a five-year collaboration with AWS and Accenture to modernise its digital, data, analytics, and AI capabilities, aiming to enhance customer experience and operational agility.
- Announced intention to fully exit its 11.7% stake in Permanent TSB Group Holdings via an institutional placing.
Valuation Changes
Summary of Valuation Changes for NatWest Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £5.83 to £5.91.
- The Future P/E for NatWest Group remained effectively unchanged, moving only marginally from 10.85x to 11.05x.
- The Consensus Revenue Growth forecasts for NatWest Group remained effectively unchanged, moving only marginally from 5.8% per annum to 5.9% per annum.
Disclaimer
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