Update shared on 26 Nov 2025
Fair value Decreased 3.54%Narrative Update on RWS Holdings
Analysts have reduced their price target for RWS Holdings from £1.95 to £1.75 per share. They cite a lower projected fair value, decreased revenue growth, and slightly tighter profit margins.
Analyst Commentary
Bullish Takeaways
- Bullish analysts continue to recommend a Buy rating, suggesting confidence in RWS Holdings' long-term business fundamentals.
- The company remains well positioned within its industry, supporting expectations of sustained operational performance.
- Despite the lowered price target, analysts see valuation upside based on RWS Holdings' market prospects and execution capabilities.
Bearish Takeaways
- Bearish analysts highlight reduced revenue growth forecasts, pointing to challenges in achieving previous expectations.
- The downward price target revision reflects concerns around tighter profit margins and competitive market dynamics.
- Cautious views remain regarding short-term valuation potential in light of revised growth projections.
What's in the News
- RWS Holdings expects full year 2025 revenue to be broadly in line with the previous year on an organic constant currency basis. Reported revenues are anticipated at £690 million, representing a 4% decrease from fiscal year 2024 (£718.2 million) (Key Developments).
- Stephen Lamb has been appointed as the incoming Chief Financial Officer and will assume the role in the first quarter of 2026. Lamb's previous experience includes serving as Group Finance Director at Midwich Group plc and in senior finance positions at Iron Mountain Inc and Experian plc (Key Developments).
- Candida Davies, current Chief Financial Officer, will step down from her role and Board position but will remain with RWS Holdings until the end of 2025 to ensure a smooth transition and the reporting of full year results. The search for her successor is underway (Key Developments).
Valuation Changes
- Fair Value Estimate has decreased slightly from £1.88 to £1.82 per share.
- Discount Rate has edged down marginally from 8.21% to 8.19%.
- Revenue Growth Forecast has declined markedly from 0.99% to 0.86%.
- Net Profit Margin is projected to decrease from 3.82% to 3.52%.
- Future P/E Ratio is expected to increase from 31.47x to 32.99x.
Disclaimer
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