NatWest Group PLC (LSE:NWG) is a major banking and financial services company based in the UK, offering a wide range of services including personal and business banking, insurance, and wealth management. Competing with other large banks like HSBC and Barclays, NatWest is a key player in the financial sector.
On February 21, 2025, NWG is set to release its quarterly earnings. Analysts expect an earnings per share (EPS) of $0.26 and revenue of approximately $3.75 billion. UBS analysts have identified NWG as a 'buy', citing its 'good' momentum and 'modest' downside risk. They have set a price target of 510p, suggesting a potential 15% increase from the current market price of 444.5p.
NatWest's growth is driven by favorable market conditions and a solid balance sheet. Core loans and deposits have increased by 3.5% and 2.9% year-over-year, respectively. The company is also benefiting from inorganic leverage and effective cost control. UBS projects a 9.2% EPS growth for the 2025/6 financial year, highlighting the company's strong performance.
Despite a negative enterprise value to sales ratio of -2.60 and an enterprise value to operating cash flow ratio of -61.62, NatWest maintains a price-to-earnings (P/E) ratio of 17.84 and a price-to-sales ratio of 1.62. The earnings yield stands at 5.61%, indicating potential returns for investors. In London, NatWest shares have risen approximately 10% so far in 2025, reflecting investor confidence.
