Netwealth Group Growth Agenda Tilting Towards Ultra High Net Worth Segment, RBC Capital Markets Says
MT Newswires Live
Sep 09
Netwealth Group's (ASX:NWL) growth agenda is tilted to the ultra-high-net-worth segment, supported by around AU$8 billion of likely new funds under administration from Morgan Stanley Wealth Management over the next two years, RBC Capital Markets said in a note on Tuesday.
The lower margins and higher investment likely see earnings-per-share (EPS) growth slow to 3% in fiscal 2027, but the firm is forecast to grow EPS at a 12% three-year compound annual growth rate.
RBC forecast net flows of AU$18.5 billion in fiscal 2027 and AU$20.5 billion in fiscal 2028.
The investment firm upgraded the rating on Netwealth to outperform from sector perform and cut the price target to AU$23.50 per share from AU$28 per share.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.