** Jefferies sees FY26 EBITDA margins to be flat or slightly down over FY25 for Australia's Netwealth Group NWL.AX

** Financial services co reports FY NPAT of A$116.5 mln ($74.79 mln) on Thursday

** Jefferies increases PT to A$32.5 from A$32.1

** Operating leverage continues to support margin expansion, which is well reflected in consensus estimates - Jefferies

** Meanwhile, Morningstar expects revenue margin compression for co due to competitive pressures, fee caps and higher operating costs

** Both note that co's better-than-expected FY25 results are owed to non-core income and one-offs rather than core business, with Morningstar saying that current EBITDA margins of 50% are lower than the 52% in 2020

** Morningstar views shares as materially overvalued, adding that market assumes higher than likely growth in flows and margins

($1 = 1.5576 Australian dollars)

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))