NatWest Group (LSE:NWG) is back in focus after Barclays upgraded the UK lender to overweight, pointing to earnings potential linked to higher domestic interest rates and the Evelyn wealth management acquisition.
Recent moves in NatWest Group’s share price tell a mixed story for momentum. The stock has a 1-day share price return of 2.08% and a 1-year total shareholder return of 29.13%. The 30-day share price return of 4.39% indicates some cooling after that strong run, even as fresh analyst attention and recent fixed income issuance keep the investment case in the spotlight.
Compare NatWest Group with a curated 8 high quality undervalued stocks that analysts are watching for potential mispricing as sentiment around banks and higher interest rates shifts.
The recent jump in NatWest Group looks tied to upbeat headlines and model signals, not just day to day trading noise. How much of that move lines up with what you actually pay for the business today?
Most Popular Narrative: 16% Undervalued
Against a last close of £6.67, the most followed narrative sets NatWest Group’s fair value closer to £7.98. This frames the recent move as a repricing of future cash generation rather than a short term pop.
Completion of the Evelyn Partners acquisition at the end of June 2026, which more than doubled NatWest Group assets under management and administration to £131b and is expected to lift group fee income by about 20%, sets up a larger mix of capital light, recurring revenue that could support earnings resilience relative to pure interest income.
See why 120 investors see NatWest Group as 16% undervalued.
Result: Fair Value of £7.98 (UNDERVALUED)
Still, the narrative around NatWest Group could be dented if net interest margins flatten, loan growth continues to outpace deposits, and political pressure on UK bank taxes intensifies.
Find out about the key risks to this NatWest Group narrative.
Next Steps
That mix of optimism and hesitation around NatWest Group is exactly why fresh data matters. Act while sentiment is still forming, and weigh both sides of the story with the 5 key rewards and 3 important warning signs
Looking for more investment ideas beyond NatWest Group?
If NatWest Group has your attention, do not stop there. Use the screener to scan wider opportunities and keep your watchlist working harder for you.
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- Prioritise capital protection first by focusing on sturdier balance sheets that look similar to those in the 4 resilient stocks with low risk scores.
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.
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