Peel Hunt has increased its target price for NatWest Group PLC (LSE:NWG) from 450p to 470p, citing improved earnings prospects and sustained positive momentum heading into 2025.
The new valuation represents an 18% premium to the current 397p share price.
The broker upgraded its earnings per share (EPS) forecasts for NatWest by 1% for 2024, 3% for 2025, and 4% for 2026, reflecting stronger-than-expected reinvestment rates on maturing structural hedge positions, driven by 5-year swap rates remaining above 4%.
Peel Hunt reiterated its 'buy' rating for NatWest, highlighting favourable conditions and resilience as key factors supporting the bank’s outlook.