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Investing.com - JPMorgan has upgraded Netwealth Group Ltd. (ASX:NWL) from Underweight to Neutral, while significantly raising its price target to AUD34.00 from AUD21.50.
The upgrade comes as JPMorgan recognizes Netwealth’s consistent outperformance in net flows trends, with the company doubling its market share over the past five years in the wealth management platform space.
JPMorgan’s analysis indicates that total household financial assets excluding property have grown at a 10-year CAGR of 7%, with wrap platform funds under administration growing even faster at a 10-year CAGR of 11.5% and a 5-year CAGR of 13.5%.
The firm expects Netwealth to continue gaining market share within the wrap platform segment, particularly from large incumbents Macquarie and BT Financial, which still hold a combined 40% market share.
Based on these trends, JPMorgan now projects high-teens near-term FUA growth for Netwealth, trending to mid-teens medium-term growth, which could lead to approximately 18% market share for the company within 10 years.
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