Netwealth Group (ASX:NWL) is likely to sustain its earnings margins into the full fiscal year despite weakness in global markets, with investors seen having "some margin of safety," Jarden analysts said in a Thursday note.
The financial services company extended its net flows guidance to fiscal year 2026 for the first time, reflecting an "increasingly confident" outlook.
"With revenue margin benefits from higher trading activity helping to offset higher cost growth, we believe NWL will be able to sustain 50% EBITDA margins," Jarden wrote.
"[W]e believe the derating of NWL to historical 12m forward P/E levels...provides some margin of safety for investors," analysts said.
Jarden upgraded Netwealth Group to neutral from underweight while lowering its price target to AU$24.30 from AU$24.95.