NatWest Group, the Financial sector company, was revisited by a Wall Street analyst today. Analyst Perlie Mong from Bank of America Securities reiterated a Buy rating on the stock and has a p575.00 price target.
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Perlie Mong’s rating is based on NatWest Group’s strong performance in the second quarter, which demonstrated solid financial results and robust loan growth. Despite the seasonal slowdown in mortgages, the bank’s commercial lending exceeded expectations, contributing to an overall healthy loan growth. This performance indicates NatWest’s ability to sustain mid-high teens returns, even amidst a challenging economic environment in the UK.
Furthermore, NatWest’s shares are trading at a reasonable price-to-tangible book value ratio, making them attractive compared to the sector. The bank’s increased price objective reflects a higher tangible book value and a reduced cost of equity. Additionally, NatWest’s management has upgraded their guidance, projecting total income to exceed £16 billion and return on tangible equity to surpass 16.5%, further supporting the Buy recommendation.
Mong covers the Financial sector, focusing on stocks such as HSBC Holdings, Lloyds Banking, and HSBC Holdings. According to TipRanks, Mong has an average return of 3.1% and a 77.78% success rate on recommended stocks.
In another report released on July 17, KBW also reiterated a Buy rating on the stock with a p600.00 price target.