NatWest Price Target Raised Further: (LON:NWG) Shares Find Support

NatWest Group’s shares (LON:NWG) are trading 0.54% higher today, gaining momentum as analysts revise their price targets upward, signalling growing confidence in the bank’s financial trajectory and strategic initiatives.

The latest adjustment comes from Morgan Stanley, with the new price target setting the stage for a potential retest of multi-year highs. Morgan Stanley increased its price target on NatWest to 620p from 590p, maintaining an “Equal Weight” rating.

NatWest’s share price has had a strong start to the year, adding 27.62%. The shares had pulled back ~10% from recent highs, in what would be almost a perfect correction to retest support. Today’s action has seen NWG move off the 510p level, potentially indicating support.

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J.P. Morgan also holds an optimistic view, raising its price target to 610p from 600p while reiterating a “Buy” rating. This bullish stance is supported by NatWest’s strong second-quarter results, which surpassed market expectations. The bank’s commitment to returning value to shareholders through dividends and share buybacks has further bolstered confidence.

The consensus among analysts points towards a positive outlook for NatWest.

NatWest’s financial results for the first half of 2025 showcased robust growth. Pre-tax profits reached £3.6 billion, an 18% increase year-over-year, exceeding analyst expectations. This performance was driven by growth in loans and deposits, leading the bank to announce a £750 million share buyback program. Additionally, the bank raised its annual return on tangible equity forecast to 16.5%, up from a previous estimate of up to 16%.

While the overall market sentiment is positive, insider trading activity presents a mixed picture. Paul Thwaite sold 26,481 shares, while Geeta Gopalan purchased 620 shares. Such activity is not uncommon, and markets will be looking to see how the sentiment plays out over the coming weeks.

The upward revisions in NatWest’s price targets, coupled with strong financial performance and shareholder-friendly initiatives, have collectively contributed to a bullish market sentiment.