BofA Says NatWest Group's Valuation Discount 'Unjustified'; Price Objective Raised

03:25 AM EDT, 09/02/2026 (MT Newswires) -- BofA Global Research lifted its price objective for NatWest Group (NWG.L) to 8.50 pounds sterling from 8 pounds, as the research firm argued that the British bank's valuation discount is "unjustified" given its business model's "simplicity." "NatWest is a good quality retail and commercial bank that is sustainably generating c.20% returns but trading at an undemanding 8.5x 2027e P/E and 7.7x 2028e P/E," analysts said Tuesday in a note focused on UK lenders. "Part of the underperformance this year reflects the market's reaction to its acquisition of wealth manager Evelyn Partners, but for an acquisition that represents only c.5% of its market cap, we don't think it will continue to be a drag on sentiment as the deal is now completed. Management will host [a] spotlight presentation on the Wealth business in November, which should help the market better understand the strategic rationale of the acquisition." On the earnings side, analysts made slight upward revisions to their forecasts to reflect higher net interest income bolstered by increased loan growth and hedge roll-off at a higher rate. BofA maintained its buy rating on the stock.