PEXA Group (ASX:PXA) remains firmly focused on its United Kingdom expansion, with NatWest's commitment seen as a major validation of its platform and long-term growth potential, despite near-term earnings impacts from increased impairments and guidance revisions, Jarden said in a Tuesday note.

The investment firm shared that the strategic review and impairments within the Digital Solutions business are set to concentrate capital on the company's core exchange and UK businesses, while Australian settlement volumes are projected to drive revenue growth, underscoring upside potential as UK adoption and Australian regulatory certainty continue to evolve.

It added that new Chief Executive Russell Cohen has launched a strategic review of the Digital Solutions business, aiming to redirect capital away from non-core products through potential divestments and exits, with some non-core holdings already sold and further updates expected at the fiscal year 2025 results.

Jarden sees the company's updated fiscal year 2025 guidance with specified items at AU$66 million to AU$70 million from non-cash impairments, depreciation, and amortization at AU$103 million to AU$105 million, and tax at AU$36 million to AU$37 million, as it plans to recover interoperability costs and fund further regulatory investments.

Key risks include interoperability issues in Australia, the pricing review, UK market share uncertainty, and Australian volume fluctuations, Jarden said.

The investment firm maintained PEXA Group's overweight rating and price target at AU$17.75.