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Netwealth Group Growth Agenda Tilting Towards Ultra High Net Worth Segment, RBC Capital Markets Says

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Netwealth Group's (ASX:NWL) growth agenda is tilted to the ultra-high-net-worth segment, supported by around AU$8 billion of likely new funds under administration from Morgan Stanley Wealth Management over the next two years, RBC Capital Markets said in a note on Tuesday.

The lower margins and higher investment likely see earnings-per-share (EPS) growth slow to 3% in fiscal 2027, but the firm is forecast to grow EPS at a 12% three-year compound annual growth rate.

RBC forecast net flows of AU$18.5 billion in fiscal 2027 and AU$20.5 billion in fiscal 2028.

The investment firm upgraded the rating on Netwealth to outperform from sector perform and cut the price target to AU$23.50 per share from AU$28 per share.

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