Jefferies cuts PT after Netwealth trims net inflows forecast

Netwealth

03/04/2023 21:28

** Jefferies cuts price target on Australia's Netwealth
Group Ltd  NWL.AX  to A$13.90 from A$14.75 following headwinds
from market volatility and negative investor sentiment hitting
annual net fund inflows 
    ** Wealth manager slumped over 10% on Monday after
forecasting net inflows to be between A$9 bln ($6.11 bln) to
A$11 bln, compared to earlier forecast of A$11 bln  urn:newsml:reuters.com:*:nL4N3660S7
    ** While the 3Q is typically a seasonal low point, net
inflows of A$1.653 bln represents the lowest level of net
inflows over the last 11 quarters - Jefferies
    ** However, brokerage adds NWL remains highly profitable,
with strong EBITDA margins, high levels of recurring revenue,
low capital expenditure while being debt free and having
significant cash reserves
    ** Reaffirms "hold" rating, says lower end of net inflow
guidance mostly likely outcome for FY23
    ** Four of 12 analysts rate the stock "buy" or higher, seven
"hold" and one "sell" or lower; their median PT is A$14.10 –
Refinitiv data
    ** Stock gained 11.7% in Jan-March, compared with a 2%
increase in the benchmark index  .AXJO 
    


($1 = 1.4734 Australian dollars)

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))