Australia's Netwealth hits 2.5-year low; MS, Bell Potter cut PT on Paradino deal
BUZZ-Australia's Netwealth hits 2.5-year low; MS, Bell Potter cut PT on Paradino deal ** Shares of Netwealth NWL.AX fall as much as 2.6% to A$18.285, their lowest since mid February, 2024
** Analysts at Morgan Stanley lower Netwealth's price target to A$27.00 from A$30.25
** Financial services provider on Tuesday said it agreed to acquire Paradino, an AI-enabled adviser workflow and advice automation technology provider for A$20 million ($14.25 million)
** Co said Paradino has not yet achieved break-even and is expected to report an EBITDA loss of A$3 million in FY27
** Morgan Stanley estimates Paradino and cash and scrip funding to impact NWL's FY27-29 EPS by 2-4%, but sees Paradino as a strong strategic fit
** While Bell Potter cuts NWL's PT to A$30 from A$30.50; slashes FY27, FY28 and FY29 earnings estimate by 3%, 3% and 6%, respectively
** NWL down 27.2% YTD
($1 = 1.4033 Australian dollars)
(Reporting by Keshav Singh Chundawat in Bengaluru)
Recent news on Netwealth
See all newsAustralia's Netwealth slips most since 2022 after revised annual outlook
Brief: Netwealth Group Posts Total FUA Of A$139.2 Billion In Q1 FY27
Brief: Netwealth To Defend Class Action
Australia's Netwealth hits multi-year low after class action over First Guardian options
Brief: Netwealth Acknowledges Potential Class Action