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DEEZR: Improved Profit Outlook May Drive Future Re-Rating Despite Higher Required Return

Update shared on 14 Dec 2025

Fair value Decreased 20%
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AnalystLowTarget's Fair Value
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1Y
-18.9%
7D
2.5%

Analysts have trimmed their price target on Deezer from €1.50 to €1.20, citing a higher required discount rate, even though expectations have improved for revenue growth, profit margins, and a lower future P/E multiple.

What's in the News

  • Deezer S.A. confirmed earnings guidance for full year 2025, expecting annual revenue to be flat to slightly declining year on year (company guidance).

Valuation Changes

  • Consensus Analyst Price Target: fair value estimate reduced from €1.50 to €1.20, reflecting a moderate downward revision.
  • Discount Rate: inched up slightly from 8.99% to 9.11%, implying a marginally higher required return from investors.
  • Revenue Growth: revised up from 7.42% to 8.70%, indicating modestly stronger expected top line expansion.
  • Net Profit Margin: increased from 5.65% to 6.74%, signaling an improvement in expected profitability.
  • Future P/E: compressed significantly from 6.82x to 4.59x, implying a lower valuation multiple on projected earnings.

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