Update shared on 11 Nov 2025
Fair value Decreased 8.95%Altus Group's analyst price target has been revised lower from approximately C$64 to C$59, as analysts cite moderating growth forecasts and increased discount rates in their updated evaluations.
Analyst Commentary
Analysts covering Altus Group have recently revised their perspectives, reflecting shifting sentiment on the company's valuation, growth outlook, and operational execution. The following summarizes both bullish and bearish takeaways from recent research updates.
Bullish Takeaways
- Bullish analysts have previously cited upgrades and higher price targets when Altus Group demonstrated above-average growth and execution, highlighting the company’s ability to outpace sector trends.
- Improvements in execution, including positive operational adjustments, have led to optimism regarding Altus Group’s ability to deliver sustainable earnings expansion.
- Valuation upside is noted when growth metrics and profitability exceed expectations, strengthening the argument for a more favorable risk-reward profile.
- Structurally, analysts point to opportunities in core markets and potential for recurring revenue to support higher long-term valuation multiples.
Bearish Takeaways
- Bearish analysts emphasize the recent downward revisions to price targets, underscoring concerns about moderating growth rates and heightened discount rates that weigh on valuation.
- Execution risks are a focus, with caution around the company's ability to maintain momentum in a more challenging macroeconomic environment.
- Downgrades to "Sector Perform" reflect tempered expectations for near-term outperformance, especially as competition and market headwinds persist.
- There is growing skepticism about Altus Group's capacity to consistently deliver against elevated earnings growth expectations without clear catalysts.
What's in the News
- Altus Group revised its full-year 2025 consolidated earnings guidance and now expects 0 to 2% revenue growth compared to the previous forecast of 2 to 4% growth (Key Developments).
- The company provided new consolidated earnings guidance for the fourth quarter of 2025, projecting 2% to 4% revenue growth (Key Developments).
- Jim Hannon will depart as Chief Executive Officer effective November 6, 2025. Former CEO Mike Gordon is set to resume the role in the first quarter of 2026 (Key Developments).
- Altus Group recently hosted an Analyst/Investor Day (Key Developments).
Valuation Changes
- Consensus Analyst Price Target: Decreased from approximately CA$64.29 to CA$58.53, reflecting a lower fair value estimate.
- Discount Rate: Increased slightly from 7.52% to 7.83%, indicating higher perceived risk.
- Revenue Growth: Moderated from 7.73% to 7.27%, pointing to more conservative growth expectations.
- Net Profit Margin: Decreased significantly from 32.37% to 7.61%, suggesting a reduced profitability outlook.
- Future P/E: Rose substantially from 13.2x to 51.7x, signaling a higher valuation multiple in the context of lower earnings projections.
Disclaimer
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