Berenberg Ups NatWest Group Price Target Amid Broad-based Q2 Growth

08:42 AM EDT, 08/03/2026 (MT Newswires) -- Berenberg raised its price target for NatWest Group (NWG.L) to 8.80 pounds sterling from 8.60 pounds amid sustained momentum after the UK-based banking group recorded strong second-quarter earnings. "We believe that the broad-based growth demonstrated with the Q2 results can continue, supporting outer-year revenues and earnings, with profitability over 20% based on our estimates," the research firm said in a note published Monday. "With operating performance being better than management expected and coupled with good line of sight about the capital generation in H2, partly supported by ongoing RWA management actions, NatWest will consider buybacks from FY26, six months earlier than previously planned." Analysts see NatWest as likely to carry out a 500 million-pound share buyback, bringing the total payout ratio for full-year 2026 to 62%. Meanwhile, total yield is anticipated to be close to 10% annually for the outer years. Against this backdrop, EPS projections were lifted by 2% for 2026, 1.9% for 2027 and 1.2% for 2028, mainly due to higher revenue. The income estimates were also upwardly adjusted for all three years.