Netwealth reported a record $2.9bn net inflows in the Dec Q, made up of $1.1bn from ANZ Private and a doubling of underlying flows from six months ago. Add in a strong market to kick off 2020 and the company has raised its funds under management outlook. Target rises to $7.65 from $7.50.
However FY20 profit guidance is unchanged, the broker notes, due to pricing pressures and accelerated reinvestment. As new competitors continue to pose downside risk, the broker retains Sell.
Sector: Diversified Financials.
Target price is $7.65.Current Price is $7.80. Difference: ($0.15) – (brackets indicate current price is over target). If NWL meets the UBS target it will return approximately -2% (excluding dividends, fees and charges – negative figures indicate an expected loss).