Street View: Brokerages mixed on Australia's Netwealth despite inflows beat

Netwealth

14/07/2023 04:35

** Australia's Netwealth Group  NWL.AX  posts 87.5%
sequential jump in Q4 net inflows 
    ** Shares slip 6% to A$13.59, set for worst session since
April 3, if losses hold
    ** Stock up ~1.9% this week as of 0328 GMT
        
    MARGIN PRESSURE, ELEVATED GROSS OUTFLOWS CONCERNS 
    
    ** UBS (retains "Buy", PT: A$16.50) says funds under
administration and net fund flows beat forecasts but notes
margin pressure from cash reallocation
    ** Ord Minnett (retains "Accumulate", hikes PT to A$15.30
from A$13.70) says NWL offers attractive market share growth
opportunity despite near-term challenges
    ** Macquarie (downgrades to "Neutral" from "Outperform",
cuts PT to A$14.40 from A$15.00) flags near-term headwinds from
elevated gross outflows 
    ** Jefferies (retains "Hold", hikes PT to A$15.03 from
A$13.90) says NWL's Q4 was strong but price already factors new
business pipeline   
    

 (Reporting by Upasana Singh in Bengaluru)
 ((Upasana.Singh@thomsonreuters.com))