0309 GMT - Netwealth's bulls at Morgan Stanley think the market seems willing to accept slimmer earnings margins in exchange for the Australian wealth platform's improved outlook for net flows. Maintaining an overweight rating on the stock, MS analysts tell clients that Netwealth's expanded relationship with the investment bank's own wealth-management business implies an acceleration to fiscal 2027 net flows that will be sustained above consensus forecasts through fiscal 2030. The analysts point out that the stock jumped on the announcement even though Netwealth guided for Ebitda margins to drop to 47% in fiscal 2027, from the 49% expected in the current fiscal year. MS cuts its target price 6.1% to 31.00 Australian dollars. Shares are down 4.3% at A$23.38. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

July 07, 2026 23:09 ET (03:09 GMT)

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