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PPS: Index Inclusion Will Support Future Margin Expansion And 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 17 Dec 2025

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Analysts have modestly raised their price target on Praemium to reflect a slightly higher projected profit margin and marginally stronger revenue growth, while applying a broadly unchanged valuation multiple and discount rate to their updated cash flow forecasts.

What's in the News

  • Praemium Limited has been added to the S&P Global BMI Index, potentially broadening its investor base and improving share liquidity (index announcement).
  • Praemium appointed Emmalene Emma Stepcic as Chief Financial Officer, effective 1 October 2025, bringing senior ASX listed and international finance experience from Atlas Arteria, Envirosuite, Schlumberger and Deloitte (company announcement).
  • Interim CFO Simon Moore will depart Praemium on 19 September 2025 upon completion of his contract, ahead of Emma Stepcic assuming the permanent CFO role (company announcement).

Valuation Changes

  • Fair Value Estimate: Unchanged at A$1.12 per share, indicating no material revision to the intrinsic value assessment.
  • Discount Rate: Risen slightly from 8.02 percent to 8.02 percent, reflecting a marginally higher required return applied to future cash flows.
  • Revenue Growth: Increased marginally from 9.74 percent to 9.74 percent, implying a slightly stronger top line outlook.
  • Net Profit Margin: Risen modestly from 17.98 percent to 18.15 percent, pointing to a small improvement in expected operating profitability.
  • Future P/E: Fallen slightly from 26.39x to 26.14x, suggesting a marginally lower valuation multiple applied to forward earnings.

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