Research Alert: CFRA Lowers Opinion On Adss Of Natwest Group To Hold From Buy
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We cut our 12-month target price for NatWest Group to USD17 from USD19. Our target price is derived by applying a P/E multiple to our 2026 EPS forecast. We now apply a target multiple of 8.0x, down from 9.3x, to reflect the more cautious near-term outlook and heightened macroeconomic risks highlighted in the Group's Q1 2026 results. While we lower our rating by a notch, our view is still largely positive, anchored by a compelling valuation discount to peers, sustained structural hedge tailwinds, and proven cost discipline. However, our thesis is now tempered by a more cautious near-term outlook following Q1 results, which revealed emerging macroeconomic headwinds and specific margin pressures. While the long-term strategic expansion into wealth management via Evelyn Partners remains sound, we believe the path to a share price re-rating now requires navigating these more pronounced near-term challenges.
