NatWest Group upgraded to Overweight from Neutral at JPMorgan

JPMorgan upgraded NatWest Group to Overweight from Neutral with a price target of 280 GBp, up from 230 GBp. The analyst is turning “relatively more positive” on U.K. banks after holding a cautious view through 2023. The view that net interest income will peak for the U.K. in 2023 has largely played out and the domestic U.K. banks have materially underperformed the market and the broader European Banks sector with consensus re-based lower, the analyst tells investors in a research note. The firm believes the recent underperformance of the shares reflected a number of company specific challenges which are unlikely to be a recurring headwind with NatWest’s net interest income trajectory likely to outperform in the first half of 2024. JPMorgan moves NatWest Group to its top pick.