Netwealth saw its shares jump by 5 per cent on Friday following the announcement on Thursday that its total funds under administration (FUA) had surpassed $120.8 billion. This figure represents a substantial 26.6 per cent increase for the September quarter compared to the same period last year. Netwealth is an investment platform that provides financial intermediaries and high net worth individuals with a range of investment solutions. The company facilitates the management and administration of wealth portfolios.
Adding to the positive momentum, Citi analyst Siraj Ahmed upgraded Netwealth to a “buy” rating on Friday. Ahmed also revised the share price target to $35, suggesting a potential short-term growth of approximately 8 per cent. The analyst’s upgrade reflects growing confidence in Netwealth’s strategic direction and expansion initiatives.
According to Ahmed, the “buy” rating is driven by the potential upside to medium-term flows stemming from Netwealth’s expansion into new market segments, including brokers. Furthermore, Netwealth’s reaffirmed operational expenditure guidance indicates that increased compliance requirements are not expected to cause a significant increase in operating expenses. The analyst also noted that leveraging artificial intelligence presents a medium-term opportunity to improve margins for the company.
