Netwealth Group Ltd (ASX: NWL) shares have been one of the strongest-performing ASX 200 financial stocks over the past year.
Netwealth has risen 59% over the past 12 months.
Over the past 5 years, it is up an impressive 206%, strongly rewarding its early backers.
Netwealth is a financial services technology company. Their financial products include superannuation, investor-directed portfolio services, managed accounts, and managed funds.
Over the past few years, it has progressively taken business away from the incumbent platforms owned by the major banks.
How has it performed lately?
Netwealth's blockbuster quarter
Last week, Netwealth announced its most recent quarterly results.
The ASX 200 company reported funds under administration (FUA) net flows of $3.8 billion for the quarter, in addition to $4.9 billion due to positive market movements.
As a result, the company held $112.8 billion in FUA at 30 June 2025. Notably, this is 28% higher than 30 June 2024.
Funds Under Management (FUM) also increased by 32% from the prior year to $27.0 billion.
Evidently, Netwealth continues to gain momentum and is winning business at an impressive rate.
However, its share price has also risen in line with this result. In the past month alone, Netwealth shares are up 17%
Is Netwealth a buy?
Let's see what one expert had to say.
In a 15 July research note, Macquarie Group Ltd (ASX: MQG) provided its take on Netwealth shares after reviewing its recent results.
The broker retained its neutral rating, however, raised its price target by 17% from $28.40 to $33.35.
Given that shares are currently changing hands for $35.81, this suggests Netwealth shares will decline 6% over the next 12 months.
Macquarie said FUA outflows were slightly elevated in the most recent quarter, due to withdrawals as a result of market volatility. However, Macquarie also noted that these were mainly non-fee paying FUA.
The broker increased its earnings per share (EPS) estimate by 4.2% for FY25, 9.6% for FY26, and ~9-10% thereafter "to reflect market movements, updated flow assumptions and operating leverage coming through in outer years".
When providing this recommendation, the broker said:
The outlook continues to be supported by a strong pipeline, reflected in an elevated PER. We forecast an 16% EPS CAGR over FY24- FY30E.
We raise our DCF-based TP by 17% to $33.35 (from $28.40), to reflect the earnings changes above and long term growth expectations.
What are other experts saying?
Earlier this month, The Motley Fool's Bronwyn Allen reported another expert's take on Netwealth.
Tony Paterno from Ord Minnett currently has a sell rating on Netwealth shares on valuation grounds.
Based on the views of two experts, investors should wait for a more attractive entry point before buying Netwealth shares.
