Citi cuts PT, forecast for Australia's Netwealth Group

Netwealth

12/07/2022 01:13

** Analysts at Citi cut price target for wealth management
platform provider Netwealth Group Ltd  NWL.AX  to A$13.20 from
A$14.0 but retains a neutral rating
    ** Brokerage lowers forecasts for NWL; now sees FY22 net
flows of A$13 billion ($8.75 billion) vs prior estimate of
A$13.2 billion due to market volatility
    ** Citi further cuts NPAT forecasts by 4% for FY22 and 7%
for FY23
    ** "Expect Netwealth to deliver solid earnings growth over
the next few years driven by the ongoing structural shift
towards specialist platforms" - Citi
    ** However, brokerage does not see the risk-reward as
compelling at current levels
    ** Four of 10 analysts rate the stock "Buy" or higher, five
"Hold" and one "Sell"; their median PT is A$14.00 – Refinitiv
data
    ** NWL stock has fallen about 30.5% this year as of last
close


($1 = 1.4857 Australian dollars)

 (Reporting by Anan Ashraf in Bengaluru)
 ((Anan.Ashraf@thomsonreuters.com;))