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PPS: Index Inclusion Will Support Future Margin-Driven Share Price Upside

Analysts Lift Praemium Price Target as Revenue Outlook and Valuation Improve Following Key Developments

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PPS
AnalystConsensusTarget
Not Invested
Published 15 Mar 2025

Update shared on 03 Dec 2025

Fair value Increased 0.51%
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AnalystConsensusTarget's Fair Value
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1Y
5.2%
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-1.8%

Analysts have nudged their price target on Praemium slightly higher to reflect improved profit margin expectations and a modestly higher assessed fair value, despite a small tempering of long term revenue growth assumptions.

What's in the News

  • Praemium Limited has been added to the S&P Global BMI Index, enhancing its visibility among global institutional investors (Key Developments)
  • Praemium has appointed Emmalene (Emma) Stepcic as Chief Financial Officer, bringing senior ASX-listed and international finance experience from Atlas Arteria, Envirosuite, Schlumberger, and Deloitte (Key Developments)
  • Interim CFO Simon Moore will depart Praemium on 19 September 2025, ahead of Emma Stepcic commencing as CFO on 1 October 2025 (Key Developments)

Valuation Changes

  • Fair value has risen slightly, with the assessed valuation increasing from 1.116x to 1.122x.
  • The discount rate has increased marginally, moving from 7.99 percent to 8.02 percent, implying a modestly higher required return.
  • Revenue growth expectations have eased slightly, with the long-term forecast reduced from about 9.82 percent to 9.74 percent per year.
  • Net profit margin assumptions have improved modestly, rising from roughly 17.60 percent to 17.98 percent.
  • Future P/E has edged lower, with the forward earnings multiple easing from 26.73x to 26.39x, reflecting a slightly less demanding valuation.

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Disclaimer

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