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Research Alert: CFRA Reiterates Buy Opinion On Adss Of Natwest Group Plc
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Research Alert: CFRA Reiterates Buy Opinion On Adss Of Natwest Group Plc
Oct 24, 2025 10:21 AM

01:05 PM EDT, 10/24/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target price to USD18 from USD16, reflecting stronger earnings momentum and a shift to a P/E-based valuation, applying 9.71x to our 2026 EPS forecast. This multiple, above the historical average of 7.83x and peer average of 8.4x, is justified by NWG's structurally improved fundamentals, including a cost/income ratio reduced to 45.8%, a CET1 ratio within its 13%-14% target range, and a capital return profile featuring a 50% payout and GBP750m buyback in H2 2025. We maintain our Buy recommendation as NWG continues to deliver superior profitability, with forward ROE of 13.5% versus peers' 11.5%, broad-based revenue growth across divisions, and robust asset quality. The return to full private ownership earlier in the year further enhances strategic flexibility, supporting our view that NWG merits a premium rating within the U.K. banking sector. We raise our earnings per ADS forecast to GBP1.30 (from GBP1.20) for 2025 and maintain GBP1.40 for 2026.

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