Update shared on 02 Dec 2025
Fair value Decreased 4.44%Analysts have reduced their price target for RTL Group from €37.15 to €35.50, citing softer revenue growth and declining profit margins as key factors in the revised valuation.
Analyst Commentary
Following the recent price target adjustments, analysts have provided a range of views on RTL Group’s outlook, focusing on valuation, revenue trends, and near-term execution risks.
Bullish Takeaways
- Bullish analysts note the company’s resilient market position, highlighting its ability to maintain steady audience share in a competitive media landscape.
- Some see potential for improved operational efficiency, believing recent cost-savings initiatives could help support profitability over time.
- Analysts point to stable dividend policy as a sign that management remains confident in the underlying cash generation of the business.
Bearish Takeaways
- Bearish analysts express concern about muted revenue growth, suggesting that structural challenges in the European TV advertising market may persist longer than previously expected.
- There is caution around declining profit margins, as higher content and technology investments may continue to weigh on near-term earnings.
- Some flag the potential for competitive pressure from digital platforms, which could limit RTL Group’s ability to drive meaningful top-line expansion in the medium term.
What's in the News
- Clément Schwebig, currently President and Managing Director Western Europe & Africa at Warner Bros. Discovery, is set to become CEO of RTL Group in May 2026, succeeding Thomas Rabe. The new executive committee will include Clément Schwebig (CEO) and Björn Bauer (CFO) (Key Developments).
- RTL Group has completed the repurchase of 3,166,052 shares, representing 2.05% of its shares, for €119.84 million under a buyback program announced in September 2025 (Key Developments).
- A share repurchase program has been launched to buy back up to 4,000,000 shares, or 2.58% of total shares, for up to €137.4 million. The goal is to build a portfolio of treasury shares for potential future acquisitions (Key Developments).
- The Board of Directors of RTL Group S.A. authorized a new share buyback plan in early September 2025 (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased from €37.15 to €35.50, reflecting a more cautious outlook on valuation.
- Discount Rate has edged down from 5.17% to 5.00%, suggesting a minor reduction in perceived risk.
- Revenue Growth expectations have fallen moderately from 4.74% to 4.41% year on year.
- Net Profit Margin projections have declined from 7.01% to 5.20%, signaling weaker anticipated profitability.
- Future P/E ratio has risen from 13.41x to 17.37x, indicating that shares are now priced at a higher multiple of forecast earnings.
Disclaimer
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