NatWest Group downgraded to Underperform from Buy at Jefferies

Jefferies analyst Joseph Dickerson double downgraded NatWest Group to Underperform from Buy with a price target of 150 GBp, down from 370 GBp. The analyst says lowered capital return expectations and earnings downgrades limit a re-rating as the market re-assesses the investment case. The firm’s earnings estimates through 2025 were cut an average of 11% and average 13% below the company consensus, respectively. NatWest’s new guidance around risk weighted asset inflation suggests the market’s capital return expectations are too high, notes Jefferies.