Update shared on 07 Nov 2025
Fair value Increased 2.79%The analyst price target for Balfour Beatty has been raised from £6.39 to £6.57. This reflects increased optimism among analysts, as seen in recent upward revisions and supportive research notes.
Analyst Commentary
Recent street research highlights the evolving sentiment among analysts towards Balfour Beatty, with a particular focus on its valuation, growth prospects, and execution abilities. Notably, multiple price target increases and rating changes have shaped the current outlook.
Bullish Takeaways- Bullish analysts have steadily raised their price targets, which indicates confidence in Balfour Beatty's future growth potential and resilience within the sector.
- Upgrades to Buy ratings show growing optimism regarding the company's underlying business fundamentals and pipeline of projects.
- Analysts cite strong execution and the ability to secure new contracts as key drivers for recent upward revisions in valuation.
- Momentum in analyst sentiment points to an expectation of robust results and continued improvements in operational efficiency.
- Some analysts remain cautious and have shifted ratings to Hold as the company approaches higher valuation multiples, reflecting concerns over near-term upside.
- Pressure on margin expansion and the competitive landscape are noted as potential headwinds that could limit outperformance.
- Bears highlight possible challenges in maintaining growth momentum, especially if end-market conditions soften or project delays occur.
What's in the News
- Berenberg raised its price target on Balfour Beatty to 660 GBp from 510 GBp and maintained a Buy rating (Berenberg).
- Panmure Liberum upgraded Balfour Beatty to Buy from Hold and issued a 650 GBp price target (Panmure Liberum).
- Balfour Beatty completed the repurchase of 14,000,000 shares, representing 2.74% of shares, for £65 million under its most recent buyback program.
- The Board declared an interim dividend of 4.2 pence per share for 2025, up from 3.8 pence the previous year.
- Balfour Beatty confirmed it is on track to achieve full year earnings expectations and anticipates further growth in 2026.
Valuation Changes
- Consensus Analyst Price Target has risen slightly, increasing from £6.39 to £6.57.
- Discount Rate has increased modestly, moving from 9.52% to 9.77%.
- Revenue Growth projection remains unchanged at 8.77%.
- Net Profit Margin is virtually unchanged and holds steady at 2.29%.
- Future P/E ratio has increased from 15.61x to 16.72x, which indicates a higher valuation multiple is being applied to future earnings.
Disclaimer
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