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STB: Stronger Profit Margins May Support Attractive Upside Potential

Digital Upheaval Will Pressure UK Finance But Efficiency Will Persevere

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STB
AnalystLowTarget
Not Invested
Published 23 Jul 2025

Update shared on 12 Dec 2025

Fair value Increased 24%
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AnalystLowTarget's Fair Value
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1Y
191.0%
7D
2.0%

Analysts have raised their price target on Secure Trust Bank from approximately £14.20 to around £17.60 per share, citing expectations of stronger profitability, a higher sustainable profit margin, and a slightly higher justified earnings multiple, despite moderating top line growth assumptions.

What's in the News

  • Secure Trust Bank PLC has been added to the S&P Global BMI Index, which may increase visibility among institutional investors and index-tracking funds (Key Developments)

Valuation Changes

  • The fair value estimate has risen from about £14.20 to approximately £17.60 per share, reflecting a material upward reassessment of intrinsic value.
  • The discount rate has increased slightly from roughly 8.34 percent to about 8.43 percent, indicating a modestly higher required return.
  • Revenue growth assumptions have edged down from around 18.2 percent to roughly 17.2 percent, reflecting slightly more conservative top line expectations.
  • The net profit margin has increased from about 33.6 percent to approximately 36.9 percent, implying stronger anticipated profitability.
  • The future P/E multiple has risen from roughly 4.1x to about 4.8x, indicating a modestly higher valuation being applied to expected earnings.

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Disclaimer

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