Update shared on 11 Nov 2025
Analysts have reduced their price target for RWS Holdings from £1.95 to £1.75. They cited lower revenue growth expectations and a higher discount rate as key factors in the adjustment.
Analyst Commentary
Recent research activity has highlighted mixed perspectives on RWS Holdings following the reduction in target price. Analysts are weighing both positive and negative factors related to the company's outlook, valuation, and operational execution.
Bullish Takeaways- Bullish analysts maintain a Buy rating, signaling confidence in the stock's long-term prospects despite the lower price target.
- There is belief that RWS Holdings can deliver shareholder value over time, given its established market position.
- Operational execution and ongoing demand in core service areas are seen as supportive of continued growth, even if at a more moderate pace.
- Lowered revenue growth expectations reflect uncertainty around the pace of the company's expansion in the near term.
- The use of a higher discount rate in valuation models suggests increased perceived risk or cost of capital.
- Analysts are cautious about how macroeconomic challenges may impact client demand and RWS Holdings' topline performance.
What's in the News
- RWS Holdings provided earnings guidance for the full year ending September 30, 2025, projecting full year revenue on an organic constant currency basis to be broadly in line with the prior year. Reported revenues are expected to reach £690 million, approximately 4% lower than fiscal year 2024 (£718.2 million). (Key Developments)
- Stephen Lamb has been appointed as incoming Chief Financial Officer and is anticipated to take on the CFO role in the first quarter of 2026. Lamb brings extensive experience in finance leadership roles at international listed companies, including Midwich Group and Iron Mountain. (Key Developments)
- Current CFO Candida Davies has announced her intention to step down as CFO and from her Board position. She will remain until the end of 2025 to ensure a smooth transition and assist with year-end reporting. The search for her successor has commenced. (Key Developments)
Valuation Changes
- The discount rate has risen slightly, increasing from 7.76% to 8.21%.
- Revenue growth expectations have declined modestly, moving from 1.14% to 0.99%.
- The net profit margin remains stable, changing minimally from 3.81% to 3.82%.
- The future P/E ratio has inched up, rising from 31.07x to 31.47x.
Disclaimer
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