Netwealth Shares Jump Nearly 7% as Beaten-Down Wealth Platform Extends Its Sharp Rebound From Yearly Lows

MELBOURNE, Australia — Shares of Netwealth Group rose nearly 7% on Tuesday, extending a rebound for the investment platform company after a steep decline over the past year.

Netwealth stock rose A$1.26, or 6.91%, to close at A$19.49, after trading between A$18.26 and A$19.60. About 786,000 shares changed hands, and the company's market value rose to about A$4.8 billion.

It was not immediately clear what drove Tuesday's gain. The rise came on a day when the S&P/ASX 200 index rose 0.34% and Australian bond yields fell after the Reserve Bank of Australia raised interest rates but signaled it may pause further hikes.

A sharp recovery

Netwealth shares have staged a strong recovery in recent weeks. The stock traded around A$16.54 on Oct. 20 and has since gained about 18%.

But the shares remain well below their highs. Netwealth has traded between A$14.57 and A$33.62 over the past 52 weeks and is down about 37% over the past year.

Record quarter

The company reported in October that its total funds under administration rose 15.2% from a year earlier to a record A$139.16 billion in the September quarter, according to RTTNews.

Netwealth runs an investment platform used by financial advisers and their clients to manage superannuation, managed accounts and other investments.

First Guardian fallout

The stock's slump has been tied in part to the collapse of the First Guardian Master Fund, which was offered on Netwealth's platform.

Netwealth agreed to make compensation payments to affected investors, which hit its statutory profit. For the year ended June 30, 2026, the company's net profit after tax fell to about A$60.7 million, despite record income.

Total income rose 20.6% to A$391.1 million, driven by a 21% rise in platform revenue. Netwealth's market share of the platform industry rose to 9.7%.

Shares fell about 10% on the day the company released its full-year results in August.

Growth outlook

For fiscal 2027, Netwealth expects funds under administration net flows of A$18 billion to A$20 billion, an increase of 17% to 30%, and an EBITDA margin of about 47%.

Chief Executive Matt Heine has described the past year as a strong one for the company, with record funds under administration and continued market share gains.

Paradino deal

In September, Netwealth announced the acquisition of Paradino, a move aimed at expanding its adviser base.

Broker Bell Potter reiterated a buy rating with a A$30 price target after the deal, saying "the impact from Paradino is limited" and describing the price as fair for what could be a transformational strategic move.

Earlier this year, Netwealth also expanded its relationship with Morgan Stanley Wealth Management Australia.

Analysts' view

Analysts are broadly positive. The average analyst price target was about A$22.83 last month, according to StockAnalysis, above Tuesday's closing price.

Interest rates

Investment platforms such as Netwealth earn revenue from fees tied to the amount of money they manage, as well as income on client cash balances.

Changes in interest rates and investor confidence can affect both inflows and earnings, making the stock sensitive to economic conditions.

What's next

Investors will look for further updates on net flows and progress on the Paradino integration, as well as any developments related to the First Guardian matter.

Netwealth is expected to provide its next update to shareholders later this month.