10 Best European Bank Stocks to Buy According to Analysts

7. NatWest Group plc (NYSE:NWG)

Number of Hedge Fund Holders: 15

Stock Upside Potential as of January 24: 10.75%

NatWest Group plc (NYSE:NWG) provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. The financial services stock has been in fine form, rallying by more than 90% over the past year to its highest level in nearly a decade. The rally comes against the backdrop of several key factors, including the bank’s robust net interest.

Amid the high interest rate environment, NatWest Group plc (NYSE:NWG) has strengthened its lending unit, bolstering its financial outlook. Likewise, analysts remain optimistic about its long-term prospects based on strategic initiatives in the commercial sector. NatWest’s recent foray into new business sectors is another factor contributing to its strong market performance. The bank has increased its market share and broadened its sources of income through the acquisition of Sainsbury’s Bank and a piece of Metro Bank’s residential mortgage portfolio. The bank’s longer-term growth trajectory has been viewed as being dependent on these acquisitions.

Increasing investor confidence has also been greatly aided by the UK government’s ongoing reduction of its ownership in NatWest Group plc (NYSE:NWG). NatWest’s return to fully private ownership is indicated by the decrease in government ownership, which analysts predict will improve the company’s performance in the future.