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MF: Lower Discount Rate And Steady Margins Will Support Upside Potential

Profit Margin Gains And Revenue Upside Will Drive Long-Term Share Performance

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MF
AnalystConsensusTarget
Not Invested
Published 02 Mar 2025

Update shared on 22 Nov 2025

Fair value Increased 1.38%
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1Y
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7D
4.8%

Narrative Update: Analyst Price Target Change for Wendel

Analysts have raised their fair value estimate for Wendel from €112.25 to €113.80, citing updated assumptions on the discount rate and profit expectations based on recent market insights.

Analyst Commentary

Bullish Takeaways

  • Bullish analysts maintain a positive outlook on Wendel, sustaining a Buy rating despite the recent adjustment of the price target.
  • The company's valuation remains attractive, with fair value estimates staying well above the new price target. This indicates confidence in future upside.
  • Updated profit expectations are seen as achievable given market dynamics, which supports conviction in strong long-term execution.
  • Analysts view Wendel's ability to adapt its financial strategies to evolving market conditions as a factor supporting sustainable growth.

Bearish Takeaways

  • Bearish analysts express caution due to the reduced price target, reflecting concerns about near-term performance and potential market headwinds.
  • There is a degree of uncertainty around the pace of profit growth, which could impact valuation in the short to medium term.
  • Some analysts note potential execution risks if market conditions deteriorate or strategic initiatives do not deliver the expected results.

Valuation Changes

  • The Fair Value Estimate has increased slightly from €112.25 to €113.80.
  • The Discount Rate has decreased modestly, moving from 10.87% to 10.73%.
  • Revenue Growth assumptions remain virtually unchanged at approximately 3.56%.
  • The Net Profit Margin is steady, with a negligible increase to 4.75%.
  • The future P/E ratio has edged up from 14.24x to 14.38x, reflecting minor adjustments in earnings expectations.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.