Jefferies upgrades Australia's Netwealth Group to 'hold' on better Q3 update

Netwealth

11/04/2024 22:54

** Jefferies upgrades rating for Netwealth Group  NWL.AX  to
"hold" from "underperform"; however trims price target
marginally to A$18.15 from A$18.60
    ** Brokerage notes co's 3Q24 custodial FUA net inflows were
up 60.4% vs pcp, but below the 12-quarter average of A$2.8 bln 
($1.83 bln)
    ** Brokerage adds the custodial FUA net inflows' 3Q24 growth
rate was aided by a weak pcp value of A$1.7 bln
    ** Financials services co's cash transaction account was
5.7% of custodial FUA, below 1H24 average of 6.4%
    ** Brokerage estimates that for every 0.5% decrease in
co's cash transaction accounts as a percentage of FUA, EBITDA
decreases by 3.6%
    ** Stock has risen 25.1% YTD, as of last close

    
($1 = 1.5295 Australian dollars)

 (Reporting by Sherin Sunny in Bengaluru)
 ((Sherin.Sunny@thomsonreuters.com))