Netwealth (ASX: NWL) Broker Ratings

11/04/2025

• Citi has maintained its Buy rating for Netwealth Group while raising the target price to $27.30 from $26.50. The broker notes that 3Q25 funds under administration beat forecasts by 1%, thanks to higher net inflows and lower-than-expected negative impact from market weakness. Citi reports net inflows are continuing in April, leading to an upgraded 4Q net flow forecast of $3.7bn, up 7% quarter-on-quarter, while cost estimates were lifted for FY26.

• UBS has maintained its Neutral rating for Netwealth Group while lowering the target price to $28.00 from $29.00. The broker notes strong net flows continued into 3Q25, with record custodial flows of $3.5bn for a typically weaker March quarter. UBS reports funds under administration rose to $103bn, including around -$1bn in market movements, with FUA growing 22% year-on-year.

• Ord Minnett has downgraded Netwealth Group to Lighten from Accumulate, dramatically cutting the target price to $15.40 from $33.00. The broker reminds investors that platform operators should be viewed as market cyclical, with fund flows, funds under administration metrics, and valuation multiples all tied to market sentiment. Ord Minnett suggests Netwealth's FY25-26 PE multiples of around 50x are unsustainably high.

• Bell Potter has maintained its Hold rating for Netwealth Group while raising the target price to $26.40 from $25.80. The broker notes the 3Q25 update was overall positive, with a net fund flow of $3.509bn in line with expectations as inflows rose and outflows slowed. Bell Potter reports funds under administration rose 2.4% quarter-on-quarter to $103.3bn, with the company expecting strong net inflows in the seasonally-strong 4Q25.

21/02/2025

• Morgan Stanley has maintained its Equal-weight rating with a target price of $29.50. The broker notes that the first-half results beat expectations, aided by lower tax rates. Morgan Stanley highlights net inflows as the main positive, with momentum continuing into the second half amid revenue margin expansion. The broker's concerns centre on reinvestment, which may limit EPS upgrades.

• Morgans has maintained its Hold rating while raising the target price to $30.25 from $27.50. The broker highlights that the company reported an underlying earnings result for 1H25 that came in better than expected, with higher revenues and a lower tax rate, boosting net profit after tax. Morgans notes the growth story remains very robust, lifting net profit after tax estimates by 14.8% and 13.4% for FY25/FY26.

• Macquarie has maintained its Neutral rating for Netwealth Group while significantly increasing the target price to $33.90 from $26.50. The broker notes the company posted underlying earnings ahead of expectations, driven by 30% growth in funds under management, while platform revenue margins were down -1.6 basis points. Macquarie has extended forecasts to FY35 to better capture the duration of growth and operating leverage.

Netwealth Stock Price

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