Up 62% since April, what does Macquarie think Netwealth shares are worth after its FY25 result?

Macquarie just amended its 12-month price target for Netwealth shares.

| More on:
A casually dressed woman at home on her couch looks at index fund charts on her laptop

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Netwealth Group Ltd (ASX: NWL) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) wealth management and technology company closed down 0.6% yesterday trading for $35.79. In morning trade on Friday, shares are up 0.2%, changing hands for $35.87 apiece.

Netwealth stock edged lower yesterday despite the company reporting strong growth metrics over the 2025 financial year (FY 2025).

With Netwealth shares up 61.8% since the recent closing lows of $22.17 on 7 April, expectations are clearly running high. Indeed, following that strong run higher, Netwealth now trades on a price to earnings (P/E) ratio of around 89 times.

A value Macquarie Group Ltd (ASX: MQG) flagged as "demanding".

We'll look at Macquarie's latest price forecast for the ASX 200 financial stock below.

But first…

What's been happening with Netwealth shares?

Netwealth shares slipped yesterday despite the company reporting a 27.1% year on year increase in total income up to $324.4 million.

Funds under administration (FUA) net flows of $15.8 billion were up 40.4% from FY 2024, resulting in total FUA of $112.8 billion at 30 June, up 28.2%.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) surged 31.1% to $163.5 million. And net profit after tax (NPAT) of $116.5 million was up 39.8% from FY 2024.

On the back of this strong growth, management declared a final fully franked dividend of 21 cents per share, up 33.3% from last year's final dividend.

If you want to bank that passive income payout, you'll need to own Netwealth shares at market close on 2 September. The ASX 200 stock trades ex-dividend on 3 September.

Looking to the financial year ahead, the company said it expects FUA net flows in line with FY 2025, with operating expense growth also similar to FY 2025.

Management said:

Netwealth has commenced FY26 maintaining strong FUA net flows momentum. Total FUA as at 18 August 2025 was $118.5B.

Building on our strong FY25 performance and opportunity pipeline, we will continue with our initiatives to invest in our people, product innovation, security infrastructure and technology capabilities.

What is Macquarie's verdict on the full year results?

In a new report on Netwealth shares, released on Thursday, Macquarie noted the strong start to the company's FY 2026 flows.

However, the broker cautioned that lower administration fees could weigh on earnings due to the impact of fee tiers and caps.

And then there's the already resilient share price.

Macquarie said that "despite a robust outlook", it was retaining its neutral outlook for the ASX 200 financial stock, given a demanding PE multiple relative to ~16% EPS CAGR [earnings per share compound annual growth] over FY25-FY30" estimates.

The broker lifted its price target for Netwealth shares by 1.5% to $33.85 (from $33.35).

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Netwealth Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Financial Shares

Two people lazing in deck chairs on a beautiful sandy beach throw their hands up in the air.
Dividend Investing

Suncorp shares tread water as investors digest 2026 dividend timeline

Here’s what income investors need to know.

Read more »

A woman wearing a lifebuoy ring reaches up for help as an arm comes down to rescue her.
Investing Strategies

Investing in a higher-for-longer world and the ASX sector built to cope

Boring, resilient, and quietly powerful.

Read more »

Businesswoman holds hand out to shake.
Financial Shares

Fintech Humm Group is fielding a takeover offer at a 16% premium

Humm Group shares have jumped on the news.

Read more »

A couple calculate their budget and finances at home using laptop and calculator.
Financial Shares

Here's the earnings forecast out to 2030 for Macquarie shares

Macquarie could become one of the most profitable businesses on the ASX.

Read more »

Green stock market graph with a rising arrow symbolising a rising share price.
Broker Notes

Up 813% in 5 years, why Macquarie expects this surging ASX 200 stock to keep outperforming in 2026

Macquarie forecasts more outperformance from this surging ASX 200 stock. Let’s see why.

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Financial Shares

MFF Capital just announced a major leadership change. Here's what it means for investors

MFF Capital has unveiled a major leadership change, and investors are watching closely to see what it means for the…

Read more »

ASX board.
Financial Shares

ASX Ltd shares drop 6% on $150m capital charge

The stock is now down 18% year to date, reflecting governance concerns and mounting transformation costs.

Read more »

Man holding Australian dollar notes, symbolising dividends.
Financial Shares

An 8.7% special dividend sounds great, but there's a catch!

This company reckons it can both pay out a special dividend and conserve cash using a "unique" strategy.

Read more »