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HOT: Higher Projected Profit Margins Will Limit Share Price Upside Ahead

Update shared on 30 Nov 2025

Fair value Increased 20%
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AnalystConsensusTarget's Fair Value
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1Y
152.4%
7D
-3.7%

Analysts have raised their price target for HOCHTIEF from €223.46 to €267.84, citing improved revenue growth projections and stronger profit margins as the basis for the upward revision.

What's in the News

  • HOCHTIEF has raised its operational net profit guidance for the financial year 2025 to EUR 750 million to EUR 780 million, up from the previous estimate of EUR 680 million to EUR 730 million (Key Developments).
  • The revised net profit target represents a 20 to 25 percent year-on-year increase compared to 2024's EUR 625 million (Key Developments).
  • The positive adjustment is attributed to stronger than expected business performance in the fourth quarter of 2025, particularly in the Turner segment, which continues to show robust profit momentum (Key Developments).

Valuation Changes

  • Fair Value Estimate: increased from €223.46 to €267.84, reflecting a notable upward revision in analysts' expectations.
  • Discount Rate: decreased marginally from 7.10% to 7.10%, indicating a slight change in the perceived risk profile.
  • Revenue Growth Projection: risen modestly from 9.74% to 9.99%, signaling improved outlook for top-line expansion.
  • Profit Margin Estimate: edged higher from 2.44% to 2.55%, suggesting expectations for stronger profitability.
  • Future P/E Ratio: increased from 16.87x to 19.20x, indicating higher anticipated valuation multiples.

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