NatWest Group plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
NatWest Group plc (LON:NWG) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.5% to hit UK£4.5b. NatWest Group reported statutory earnings per share (EPS) UK£0.20, which was a notable 18% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the 16 analysts covering NatWest Group are now predicting revenues of UK£18.1b in 2026. If met, this would reflect a modest 7.8% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be UK£0.74, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£18.0b and earnings per share (EPS) of UK£0.72 in 2026. So the consensus seems to have become somewhat more optimistic on NatWest Group's earnings potential following these results.
Check out our latest analysis for NatWest Group
The consensus price target was unchanged at UK£7.72, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic NatWest Group analyst has a price target of UK£8.80 per share, while the most pessimistic values it at UK£6.50. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting NatWest Group is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting NatWest Group's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 7.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect NatWest Group to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NatWest Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for NatWest Group going out to 2028, and you can see them free on our platform here..
You still need to take note of risks, for example - NatWest Group has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.