The UK’s privacy watchdog, the Information Commissioner’s Office (ICO), extended its formal apology to the former CEO, Alison Rose, of NatWest Group (GB:NWG) in Nigel Farage’s investigation. Farage is a well-known politician, who was a former leader of the UKIP (UK Independence Party) and the Brexit Party. Last month, the ICO suggested that Rose had violated data protection laws by discussing Farage’s banking association with a BBC journalist. Post these comments, the shares went down by around 10%, marking its biggest single-day loss since 2016.
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However, yesterday, it accepted its mistake, stating that it did not find any breach in data protection laws and “apologize for any misunderstanding created by its statement.” ICO further said that it did not investigate Ms. Rose’s actions, as NatWest was the entity under investigation as the data controller. ICO expressed its regret for not providing Rose with an opportunity to present her side of the story.
On Monday, the stock experienced a gain of 1.67% in trading.
The Backdrop
In July 2023, Rose stepped down from her position as chief executive after acknowledging that she had conversed with a BBC reporter regarding the association between Farage and Coutts. The sudden resignation took place in response to the closure of Farage’s account at one of the company’s subsidiary banks, Coutts.
Rose faced mounting pressure to step down from her position after Farage voiced his discontent to the BBC. Subsequently, NatWest has been subject to considerable political and media scrutiny.
Last month, NatWest also published its Q3 2023 earnings report, which included a lowered profit margin outlook for the year. The bank revised its full-year margin guidance to slightly above 3%, down from the previous forecast of around 3.15%.
What is the Target Price for NatWest Stock?
Yesterday, analyst Jason Napier from UBS reiterated his Buy rating on the stock, predicting an increase of 21% in the share price.
According to TipRanks, the NWG stock has a Moderate Buy rating, which is based on a total of 11 recommendations. This includes five Buy, five Hold, and one Sell recommendations. The NatWest share price forecast is 268.18p, implying a growth of over 40% on the current trading levels.
