Update shared on 15 Nov 2025
Analysts have maintained their price target for Galliford Try Holdings at £5.98, reflecting only minimal adjustments to growth and profitability assumptions. Ongoing projections indicate stable fundamentals despite a slightly higher discount rate and modest shifts in forecast margins.
Analyst Commentary
Recent commentary highlights differing perspectives on Galliford Try Holdings, with ongoing debate around the company's financial resilience and growth prospects.
Bullish Takeaways- Bullish analysts see robust fundamentals supporting the current valuation, with strong project execution and consistent order book replenishment cited as key factors.
- Continued adherence to balanced capital allocation and cost discipline is expected to support earnings stability, even in the face of industry headwinds.
- The company’s track record of successful contract delivery and risk management is viewed as a cornerstone for dependable, long-term growth.
- Bearish analysts highlight that margin expansion remains constrained, with only incremental improvements expected in the near term.
- There are concerns that external pressures such as rising costs and competitive dynamics could limit the potential for higher profitability.
- A marginal increase in the discount rate and cautious adjustments to growth assumptions indicate the possibility of slower value creation ahead.
What's in the News
- Appointed to a EUR 3 billion affordable homes framework by The Hyde Group, confirmed on all seven lots across East, South and London regions for a five-year period. The project aims to build 1,500 homes annually (Client Announcements)
- Added to the FTSE 250, FTSE 350 (Ex Investment Companies), and FTSE 350 Indexes, which strengthens its presence among leading UK-listed companies (Index Constituent Adds)
- The Board has authorized a buyback plan and announced a share repurchase program of up to £10 million. Shares purchased will be cancelled to enhance earnings per share and return capital to shareholders (Buyback Transaction Announcements)
- Proposing a final dividend of 13.5 pence per share for the year ended 30 June 2025, bringing the total to 19.0 pence per share subject to shareholder approval. This is up from the previous year (Dividend Increases)
Valuation Changes
- Consensus Analyst Price Target remains unchanged at £5.98, indicating no overall adjustment to fair value estimates.
- The discount rate has risen slightly from 8.65% to 8.98%, reflecting a modest increase in perceived risk or market conditions.
- Revenue growth expectations have decreased marginally from 2.76% to 2.74%, signaling a very minor downward revision in growth outlook.
- Net profit margin has fallen slightly, moving from 2.06% to 2.01%.
- Future P/E has increased from 17.35x to 17.96x, suggesting that shares are now valued at a higher multiple of expected earnings.
Disclaimer
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