NatWest Group upgraded to Buy from Underperform at Jefferies

Jefferies analyst Jonathan Pierce upgraded NatWest Group to Buy from Underperform with a price target of 425 GBp, up from 140 GBp, following a transfer of coverage. The firm says NatWest “is the easiest play on the hedge story.” The bank’s net interest income is 77% of revenue, the mortgage book has fully repriced, and deposit mix is stabilizing, the analyst tells investors in a research note. “Now it’s all about the hedge where net maturity yields are zero next year,” adds Jefferies.