Australia's Netwealth hits 2.5-year low; MS, Bell Potter cut PT on Paradino deal

** Shares of Netwealth NWL.AX fall as much as 2.6% to A$18.285, their lowest since mid February, 2024

** Analysts at Morgan Stanley lower Netwealth's price target to A$27.00 from A$30.25

** Financial services provider on Tuesday said it agreed to acquire Paradino, an AI-enabled adviser workflow and advice automation technology provider for A$20 million ($14.25 million)

** Co said Paradino has not yet achieved break-even and is expected to report an EBITDA loss of A$3 million in FY27

** Morgan Stanley estimates Paradino and cash and scrip funding to impact NWL's FY27-29 EPS by 2-4%, but sees Paradino as a strong strategic fit

** While Bell Potter cuts NWL's PT to A$30 from A$30.50; slashes FY27, FY28 and FY29 earnings estimate by 3%, 3% and 6%, respectively

** NWL down 27.2% YTD

($1 = 1.4033 Australian dollars)