Update shared on 03 Nov 2025
Analysts have raised their price target for Diploma from £45.00 to £60.00, citing the company's strong growth profile and its status as one of the safer options within its peer group.
Analyst Commentary
Bullish Takeaways
- Bullish analysts highlight Diploma's position as a standout growth name, particularly when compared to its industry peers.
- The company's recent price target upgrade reflects strong confidence in its ability to continue sustained, predictable growth.
- Diploma is regarded as a comparatively safe option for investors and offers stability in a market perceived to lack compelling value elsewhere.
- Upgrades in analyst ratings indicate expectations of consistent execution and robust underlying fundamentals, which support an elevated valuation.
Bearish Takeaways
- Bearish analysts remain cautious about the limited opportunities for exceptional value and suggest that much of Diploma's growth potential may already be priced in.
- Concerns persist over whether Diploma can consistently outperform as market conditions evolve, especially in a more competitive environment.
- There is some skepticism around the sustainability of execution at the current growth pace and this prompts focus on delivery against rising expectations.
What's in the News
- Diploma PLC reaffirmed its earnings guidance for FY2025, stating that the Group's outlook remains unchanged. (Key Developments)
- Chris Davies, Chief Financial Officer, has resigned from his role and stepped down from the Board with immediate effect due to personal conduct not meeting company standards. His departure is not linked to financial performance, and guidance for FY2025 remains unchanged. (Key Developments)
- Wilson Ng, previously Group Financial Controller, has been appointed Acting Group Chief Financial Officer. A search for a permanent replacement is underway. (Key Developments)
Valuation Changes
- Fair Value remains unchanged at £56.15.
- The discount rate has decreased slightly from 8.18% to 8.13%.
- Revenue growth remains steady at 6.24%.
- Net profit margin is virtually unchanged at 13.92%.
- The future P/E ratio has marginally decreased from 38.96x to 38.91x.
Disclaimer
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