NatWest Group (NWG) Upgraded To Outperform at BNP Paribas

NatWest Group plc (NYSE:NWG) is one of the Best European Bank Stocks to Buy According to Hedge Funds. On May 11, NatWest Group plc (NYSE:NWG) was upgraded at BNP Paribas by analyst Guy Stebbings from Neutral to Outperform. The analyst has set a price target of $18.2 on the stock.

​The rating comes after the company reported fiscal Q1 2026 results on May 1. The bank reported a 12% year-over-year increase in first-quarter profits before tax. The operating profit reached 2 billion pounds and came in ahead of the analyst consensus of 1.9 billion pounds. Management highlighted that results were driven by growth in lending income.

​The results show that NatWest Group, like its peer Lloyds Banking Group plc (NYSE:LYG) has shown continued profitability despite geopolitical concerns from the Iran war. The bank also upgraded its full-year income guidance and expects the income to be near the top of its 17.2 billion to 17.6 billion pound range, signaling confidence in its near-term performance despite a more uncertain backdrop.

​Reuters reported that the outlook was notably cautious. NatWest sharply revised down its UK economic forecasts and is now expecting GDP growth of just 0.4% for the year, compared to its earlier estimate of 1%, and house price growth of only 0.7% versus a prior forecast of 3.4%. These downgrades reflect rising inflation fears linked to oil price volatility and the ongoing Middle East conflict. The bank also took a 283 million pound impairment charge, with 140 million pounds directly tied to the economic impact of the Iran war.

​NatWest Group plc (NYSE:NWG) provides banking and financial services in the United Kingdom and internationally.

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