Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Shore Capital rates NatWest a 'buy', but upside limited
(Sharecast News) - Shore Capital has reiterated its 'buy' rating on UK banking group NatWest after a forecast-beating first quarter, but said it sees the least amount of upside potential in the stock compared with the wider banking sector. NatWest reported a pre-tax profit of £1.33bn for the first three months of the year, down 27% year-on-year but £68m ahead of consensus forecasts, representing a beat of 5%. This was due to positive changes in net interest income, impairments, and litigation and conduct charges.
Reported earnings per share of 10.5p beat consensus by 9%, tangible net asset value per share of 302p beat consensus by 9p, while reported return on tangible equity of 14.2% beat consensus by 1.3 percentage points.
However, the fact that NatWest's board has chosen to keep full-year guidance unchanged "may disappoint investors following a recent strong run in the shares", said Shore Capital analyst Gary Greenwood.
He pointed out that the stock has surged 32% so far this year - as of Thursday's closing price of 290p - outperforming the FTSE All-Share Index by 28%
Shore Capital's fair-value estimate for the shares is 315p, which implies just 9% upside from Thursday's price - though Friday morning's 3.4% gain to 299.7p reduces that somewhat.
"NatWest currently offers the least upside to fair value of the large UK banks. We retain a 'buy' recommendation for now, but we will review the appropriateness of this in light of any share price reaction and further commentary on the results call," Greenwood said.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
