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IOS: Rising Profit Margins And Buybacks Will Drive Strong Future Returns

Analysts Trim IONOS Group Price Target as Growth Forecasts Ease and Buybacks Progress

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IOS
AnalystConsensusTarget
Not Invested
Published 26 Dec 2024

Update shared on 10 Dec 2025

Fair value Decreased 2.04%
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Analysts have slightly reduced their price target on IONOS Group to approximately €38.50 from about €39.30, reflecting tempered revenue growth assumptions, marginally improved profit margin expectations, and a modestly higher discount rate.

What's in the News

  • IONOS Group confirmed new guidance for 2025, targeting approximately 8% revenue growth compared with 2024 revenue of €1,248.1 million (company guidance).
  • The company has completed its current share buyback program, repurchasing a total of 2,350,000 shares, or 1.68% of share capital, for €46.86 million under the program announced on May 21, 2024 (company filing).
  • IONOS Group appointed Patrik Heider as Chief Financial Officer effective November 15, 2025, with full CFO responsibilities from January 1, 2026, succeeding outgoing CFO Britta Schmidt after a joint transition phase (company announcement).

Valuation Changes

  • The fair value estimate has decreased slightly from €39.30 to €38.50 per share, reflecting more cautious growth assumptions.
  • The discount rate has risen marginally from 7.33% to 7.37%, implying a modestly higher required return from investors.
  • Revenue growth has been reduced significantly in the model, from about 0.91% to approximately 0.61% annually.
  • Net profit margin has improved slightly, increasing from roughly 21.25% to about 21.35% in the updated forecasts.
  • The future P/E multiple has edged down modestly from 18.57x to 18.29x, indicating a slightly lower valuation multiple applied to future earnings.

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