Citi analysts continue to forecast solid funds flows and ongoing potential upside over the next 1 to 2 years as industry dynamics remain favourable for challengers like Netwealth.
Rising rates do act as a headwind to valuation, but the analysts consider higher rates should be a positive for cash margins and thus could represent earnings upside.
Neutral rating retained as Citi continues to struggle with the valuation, while the price target climbs to $16.40 (up from $15.95).
Sector: Diversified Financials.
Target price is $16.40.Current Price is $15.62. Difference: $0.78 – (brackets indicate current price is over target). If NWL meets the Citi target it will return approximately 5% (excluding dividends, fees and charges – negative figures indicate an expected loss).
