Jefferies says Netwealth Group might miss FY23 targets, cuts rating

Netwealth

19/01/2023 22:42

** Jefferies cuts rating and price target on Australia's
Netwealth Group  NWL.AX , saying the wealth manager might miss
its FY23 net inflow target
    ** Notes that NWL's revised FY23 net inflow estimate of A$11
bln ($7.60 bln) requires an average of A$2.9 bln in net inflows
for H2'23 
    ** Further notes that over the last 14 quarters, NWL has
achieved more than A$2.9 bln in net inflows on five occasions 
    ** Brokerage cuts price target to A$14.00 from A$14.29,
downgrades to "hold" from "buy"
    ** Says fall in NWL's net inflows in Q2 is attributable to
deteriorating market conditions and larger-than-usual outflows
from the high net worth and mid-market segments
    ** Five of 12 analysts rate the stock "buy" or higher, six
"hold" and one "sell"; their median PT is A$14.00– Refinitiv
data
    ** Stock fell 31.6% in 2022
($1 = 1.4470 Australian dollars)
 (Reporting by Echha Jain in Bengaluru)
 ((Echha.jain@thomsonreuters.com))