NatWest Group’s stock narrative continues to evolve, as recent updates to analyst price targets capture both growing optimism and a dose of caution. While the fair value estimate remains steady at £6.05, the discount rate has seen only a slight uptick. This reflects minimal shifts in perceived risk. Investors should stay tuned to explore how ongoing changes in market sentiment may shape future updates on NatWest’s outlook and valuation.
Recent analyst commentary on NatWest Group highlights an active reassessment of the company’s prospects, with several firms revisiting their price targets and maintaining a mix of optimistic and pragmatic views. Analysts have continued to monitor NatWest’s execution, valuation, and risk profile as key factors shaping their recommendations.
🐂 Bullish Takeaways
Multiple firms, including JPMorgan, Citi, and RBC Capital, have issued substantial increases to their price targets. This reflects growing confidence in NatWest’s execution and growth outlook.
JPMorgan most recently raised its price target from 610 GBp to 700 GBp while reaffirming an Overweight rating. The firm pointed to positive momentum in the bank’s underlying performance and potential upside in valuation.
Citi also raised its price target to 640 GBp from 620 GBp while maintaining a Buy rating, indicating optimism around NatWest’s ability to deliver on key strategic initiatives.
RBC Capital issued a particularly notable update in July, lifting its price target significantly from 475 GBp to 650 GBp. The firm cited improved sector performance as a driver.
Across these updates, analysts have rewarded NatWest’s cost control and sound execution. They see further growth as a realistic scenario provided that management stays on course.
🐻 Bearish Takeaways
Several price target revisions from Morgan Stanley maintained an Equal Weight rating, indicating a more measured or neutral stance despite incremental price target increases. Examples include adjustments from 590 GBp to 620 GBp and most recently to 650 GBp.
Bearish or cautious sentiment from analysts often centers on valuation, with some concern that much of the anticipated upside may already be reflected in the current share price and could limit near-term returns.
While transparency and execution are broadly praised, firms with more cautious outlooks continue to point to the persistence of sector risks and the potential for near-term volatility to temper further gains in NatWest’s valuation.
NatWest Group is reportedly seeking to sell Cushon, the workplace pensions provider it acquired two years ago, as part of a strategic refocus on its core banking priorities. The bank is currently in detailed talks with multiple potential buyers for its 85% stake in Cushon.
The company launched a new share repurchase program on July 28, 2025. This program authorizes the buyback of up to 10% of its issued share capital, with total repurchases of up to £750 million. All repurchased shares will be cancelled to reduce the total issued share capital.
NatWest Group has declared an interim dividend of £768 million, or 9.5 pence per ordinary share. The dividend will be paid on September 12, 2025 to shareholders on record as of August 8, 2025.
Media reports suggest NatWest is among the firms approached as potential buyers for Evelyn Partners, a leading UK wealth management company. Private equity owners are considering a £2.5 billion sale.
The Fair Value Estimate remains unchanged at £6.05, reflecting stability in the underlying valuation model.
The discount rate has risen slightly from 8.39% to 8.40%, which indicates a marginal increase in perceived risk or cost of capital.
Revenue growth forecasts are essentially unchanged and remain steady at approximately 6.39%.
Net profit margin projections have shown negligible change, staying around 29.36%.
Future P/E ratio estimates have increased only marginally from 11.00x to 11.01x.
A Narrative is Simply Wall St’s smarter, story-driven approach to investing. Narratives connect the numbers, such as a company’s fair value and growth forecasts, with the big picture story behind them. This makes it easy for anyone to understand the “why” behind an investment. You can follow Narratives (used by millions) on the Community page, compare fair value to price, and receive live updates whenever new data or news changes the outlook.
How NatWest’s digital transformation and AI initiatives are accelerating efficiency and improving customer experience.
Why leadership in climate finance and a growing customer base are driving above-average growth and shareholder value.
What key risks, such as regulatory changes and fintech competition, could influence NatWest’s outlook and fair value in real time.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include NWG.L.
