Stock Price & Analysis

Based on the provided data, here's a concise analysis of NWG stock:

Technical Analysis The stock is currently trading at $10.57, showing a decline of -1.49% in the regular market session. The RSI(14) at 58.59 indicates neutral momentum, neither overbought nor oversold. The stock is trading above its 20-day moving average of $10.11, suggesting a short-term upward trend.

Recent Developments The UK has delayed the implementation of Basel 3.1 banking reforms by one year to January 1, 2027. This regulatory postponement provides NatWest with additional time to adjust its capital requirements and operational framework.

Market Position As the largest commercial lender in the UK with 20% market share and second-largest retail bank with ~13% mortgage share, NatWest maintains a strong competitive position. The bank is well-positioned to benefit from improving margin trends and potential rebounds in UK housing and economic activity.

Valuation & Growth Trading at approximately 7x FY25 P/E, NatWest appears undervalued compared to peers. The company offers a dividend yield of 4.43% with a payout ratio of approximately 40% of attributable profit, demonstrating commitment to shareholder returns while maintaining capital strength.

Recommendation HOLD - While NatWest shows attractive valuation metrics and solid market position, recent pre-market weakness (-1.12%) and broader market uncertainty suggest waiting for a more attractive entry point.

Based on the provided data and current market conditions, here's the price prediction for NWG stock in 2025:

NWG stock is expected to reach $11.57 by mid-2025, driven by the implementation delay of Basel 3.1 banking reforms to January 2027 which provides regulatory clarity and stability for UK banks. The stock's current technical indicators showing RSI at 58.59 and positive MACD of 0.08 suggest moderate upward momentum. The Fibonacci resistance levels indicate potential upside to $10.97 (R2) and $11.57 (R3) in 2025.

The S1 support level for NWG Stock is $9.39 ,The R1 resistant level for NWG Stock is $10.6.

As of the end of day on 2025-01-24, the price of NWG Stock was $10.57.

The market cap of NWG is $42.6B.

Based on the provided data and current valuation metrics, NWG appears fairly valued. The stock trades at a P/E of 7.16x (Q3 2024), which is reasonable for the banking sector. The price-to-book ratio of 0.76x suggests the stock trades below its book value, indicating potential undervaluation from an asset perspective.

Recent Performance The stock closed at $10.57 on January 24, 2025, with a -1.49% decline during regular trading hours . The stock has shown some weakness recently, with pre-market trading also down -1.12%.

Analyst View Jefferies analyst upgraded NWG to Strong Buy from Sell in October 2024, citing the bank's strong positioning in terms of net interest income (77% of revenue) and stabilizing deposit mix. This indicates positive sentiment from institutional analysts.

Key Strengths

• Strong dividend yield of 4.86% (Q3 2024)
• Solid net interest income contribution
• Fully repriced mortgage book
• Stabilizing deposit mix

Risk Factors

• Basel 3.1 implementation delay to January 2027 creates regulatory uncertainty
• Recent stock price weakness (-5.5% in pre-market on January 10, 2025)
• UK economic stagnation concerns with inflation rebounding to eight-month highs

Conclusion While NWG shows some attractive valuation metrics and dividend yield, the current market conditions and regulatory environment suggest the stock is appropriately priced. The bank's strong fundamentals are balanced against macro risks in the UK banking sector.

NatWest Group derives around 90% of its total income from the United Kingdom. The bank operates a retail, commercial, and private bank in the U.K., offering clients lending and payment services as well as asset management services.

Based on the provided data and market analysis, here is the price prediction for NWG stock by 2030:

NatWest Group (NWG) stock is projected to reach approximately $18-20 by 2030, representing a ~70-90% upside from current levels of $10.57. This forecast is supported by the bank's strong commercial lending position in the UK market (20% share) and its second-largest retail banking presence with ~13% mortgage market share. The implementation of Basel 3.1 banking reforms by 2027 and continued focus on digital transformation should further strengthen NWG's market position.

The bank's consistent dividend growth policy targeting 40% payout ratio of attributable profit and strong capital position enabling significant buybacks should support 8% annual EPS growth over the coming years. Additionally, NWG's current attractive valuation at 7x forward P/E compared to peers trading at much higher multiples provides room for multiple expansion.

NWG has a total of 61800 employees.