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GLJ: Earnings Guidance Will Support Higher Expected Returns Despite Margin Pressure

Update shared on 15 Dec 2025

Fair value Increased 38%
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AnalystLowTarget's Fair Value
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1Y
-5.4%
7D
-2.0%

Analysts have raised their price target for Grenke from €14.50 to €20.00. This reflects higher anticipated revenue growth, despite lower projected profit margins and a modestly richer future P E multiple.

What's in the News

  • Grenke AG confirmed its 2025 earnings guidance, targeting net income between EUR 71 million and EUR 81 million. This signals confidence in its medium term profitability outlook (Key Developments).

Valuation Changes

  • The fair value estimate has increased from €14.50 to €20.00 per share, implying a substantially higher assessed equity value.
  • The discount rate has risen slightly from 9.81 percent to 9.98 percent, indicating a marginally higher required return from investors.
  • The revenue growth assumption has increased from approximately 0.39 percent to about 14.35 percent, reflecting a stronger growth outlook.
  • The net profit margin forecast has fallen from about 20.52 percent to roughly 13.60 percent, pointing to lower expected profitability on each euro of revenue.
  • The future P/E multiple has risen from about 5.61x to roughly 9.00x, suggesting investors may be willing to pay more for Grenke's anticipated earnings stream.

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