NatWest Group PLC (LSE:NWG) is a ‘buy’ that offers investors ‘good’ momentum and only ‘modest’ downside risk, that’s according to analysts at UBS.
The Swiss bank’s analysts, in a new note, pitch a 510p price target that suggests around 15% upside to the current market price of 444.5p.
“NatWest is growing well, driven by hedge tailwinds, solid balance sheet growth (core loans and deposits were up 3.5% and 2.9% year-over-year respectively and with good 4Q quarter-over-quarter momentum), some inorganic leverage, good cost control and shrinking share count driving attractive EPS growth,” analyst Jason Napier writes.
UBS estimates some 9.2% growth on an earnings per share basis for the 2025/6 financial year.
Reacting to NatWest’s recent results, UBS noted that pre-tax profit was above analyst consensus, and, that forecasts appear stable.
“Our estimates are broadly unchanged, as is our 510p price target,” Napier added.
In London, NatWest shares are up around 10% for 2025 to date, changing hands at 444.5p on Tuesday.