Shares of ASX-listed Netwealth Group Limited (AU:NWL) declined 5% on Monday after the company released its business update. The company highlighted a major milestone of $100 billion in FUA (funds under administration) while celebrating its 25th anniversary. However, the stock moved in the opposite direction as the market expected much stronger numbers. Year-to-date, NWL stock has surged by 88%.
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As of November 28, the company’s FUA rose to $100 billion from $95.4 billion at September end. The November FUA comprised $99.5 billion in custodial FUA and $0.7 billion in non-custodial FUA.
Netwealth is a financial services company offering a range of products, including superannuation products, advisory solutions, and investment solutions.
Netwealth Posts Impressive Numbers
Netwealth’s total FUA net inflows for FY25 year-to-date reached $6.6 billion, with $5.6 billion from market movements. This comes after a record-breaking September quarter for Netwealth, which recorded $7.4 billion in inflows.
Additionally, Netwealth’s flagship Managed Account offering surpassed $20.6 billion. The company attributed this growth partly to the industry’s shift, where financial advisory firms are embracing technology to improve their services.
Along with its update, the company also launched its new online platform, featuring a modern, user-friendly, and interactive design to support its future growth.
What Is the Share Price Forecast for Netwealth?
In terms of share price growth, analysts have a bearish outlook on NWL stock, as reflected in the Moderate Sell rating. In November, analysts from Citi and Wilsons confirmed their Hold ratings on NWL stock, predicting further downside risk.
According to TipRanks’ rating consensus, NWL stock has five Hold and three Sell recommendations. The Netwealth share price forecast is AU$24.00, indicating a downside of 18% on the share price.
