The UK-based banking giant NatWest Group (GB:NWG) announced the appointment of a new chairman, Richard Haythornthwaite, to replace Davies in the wake of the Nigel Farage fiasco. Haythornthwaite will assume the position in January of next year.
Former NatWest CEO Alison Rose unexpectedly resigned from her position in July 2023. This surprising decision was associated with the closure of Nigel Farage’s account at one of the company’s banks, Coutts.
The NatWest share price traded down by 1.04% yesterday after the news announcement. Since the Farage controversy, the stock has experienced a decline of over 7% in trading, leading to a YTD loss of 10.5%.
Challenging Times Ahead
Haythornthwaite, who is currently chairman at Ocado Group, will be joining the bank at a crucial time and stepping into a challenging position. His most important task after joining will involve spearheading the search for the next chief executive of the bank.
Haythornthwaite held the position of global chairman at Mastercard for 14 years and also served as chairman of Centrica for five years during that tenure. It’s expected that he will continue in his role as chairman of Ocado and step down from most of his other directorships.
What is the Future Price of NatWest Stock?
According to TipRanks, the NWG stock has a Moderate Buy rating, which is based on a total of 10 recommendations. This includes six Buy, three Hold, and one Sell ratings from analysts. The NatWest share price forecast is 350p, implying a growth of 55% on the current trading levels.
Despite the ongoing leadership turmoil within the bank, analysts maintain a positive outlook on the stock. They are optimistic regarding the bank’s long-term growth potential, citing its strong financial position and growth in interest income.
29 days ago, Citi analyst Andrew Coombs confirmed his Buy rating on the stock, predicting a huge upside of 70% in the share price. He, however, reduced his price target from 480p to 390p. Coombs earlier stated that Rose’s resignation was a “loss to the firm.”
