Update shared on03 Oct 2025
Fair value Increased 8.57%Galliford Try Holdings' analyst price target has increased from £5.51 to £5.98, as analysts point to a slightly higher fair value and improved profit margin expectations that support the revised outlook.
Analyst Commentary
Bullish Takeaways- Bullish analysts highlight improved profit margins as a key driver supporting the upgraded price target. This suggests operational efficiencies are being realized.
- There is confidence in Galliford Try Holdings’ ability to achieve a higher fair value, which indicates potential for sustained growth relative to current market access.
- Analysts point to the company's capacity to manage costs effectively. This is expected to further strengthen earnings and bolster shareholder value.
- Expectations of robust execution on projects have reinforced the positive outlook, since well-managed delivery remains crucial for continued momentum.
- Bearish analysts caution that if profit margins fall short of projections, the current valuation could come under pressure.
- Some remain watchful regarding the company’s exposure to cyclical market fluctuations, which may introduce volatility in future earnings.
- Concerns linger around execution risks, particularly as the company scales operations. This could impact the consistency of financial performance.
- There is also vigilance about the company’s cost management, noting that unexpected increases could challenge near-term profitability targets.
What's in the News
- Galliford Try Holdings plc has announced a share repurchase program of up to £10 million. The intention is to reduce share capital and enhance earnings per share. Ordinary shares purchased will be cancelled. (Share buyback announcement)
- The company is proposing a final dividend of 13.5 pence per share for the financial year ending 30 June 2025. This brings the total 2025 dividend to 19.0 pence per share, subject to shareholder approval. (Dividend proposal)
- Galliford Try Holdings plc expects full year revenue for 2025 to exceed the upper end of current analyst forecasts, projecting between £1,864.7 million and £1,885.6 million. (Earnings guidance)
- The company has been added to several FTSE indices, including the FTSE 250, FTSE 350, and related ex-investment company indices. (Index additions)
Valuation Changes
- Fair Value has risen from £5.51 to £5.98, reflecting a modest increase in the estimated intrinsic value of the company.
- Discount Rate increased marginally from 8.61% to 8.63%, suggesting a slightly higher required rate of return applied in the valuation model.
- Revenue Growth forecasts declined slightly, moving from 2.79% to 2.76%.
- Net Profit Margin is projected to improve, rising from 2.01% to 2.06%.
- Future P/E ratio has increased from 16.4x to 17.2x, indicating a higher expected valuation relative to future earnings.
Disclaimer
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