Update shared on 25 Nov 2025
Narrative Update on PageGroup Analyst Price Target
The analyst price target for PageGroup has been reduced from £2.80 to £2.50. Analysts cite subdued profit margin expectations and sector headwinds as supporting factors for their revised outlook.
Analyst Commentary
Analyst opinion on PageGroup remains divided, following the recent adjustment in price targets and ongoing market conditions impacting the recruitment sector. A recent research note highlighted cautious positioning but also recognized elements supporting the current valuation.
Bullish Takeaways
- Bullish analysts acknowledge the company's solid market position within the recruitment industry. This is seen as providing resilience against sector headwinds.
- There is confidence that PageGroup's broad geographic diversification may help mitigate localized downturns and aid overall stability.
- Ongoing investments in technology and operational efficiency are viewed positively for potential future margin improvement and supporting long-term growth prospects.
Bearish Takeaways
- Bearish analysts have highlighted muted expectations for profit margins, citing ongoing macroeconomic uncertainty and sector pressure.
- Concerns persist that lower hiring demand may weigh on near-term revenue growth, putting additional pressure on valuation.
- Analysts caution that competitive intensity remains elevated. This could impact pricing power and limit further margin expansion.
What's in the News
- PageGroup plc has lowered its earnings guidance for the 2025 fiscal year. The Board now expects full-year operating profit to be broadly in line with the current consensus of £21.5 million (Key Developments).
- The updated guidance reflects a reduction of £0.5 million in expected operating profit for the upcoming year (Key Developments).
Valuation Changes
- Fair Value: Remains unchanged at £3.08 per share.
- Discount Rate: Has risen slightly to 7.76 percent, compared to 7.75 percent previously.
- Revenue Growth: Remains unchanged at 0.65 percent.
- Net Profit Margin: Has decreased modestly from 4.77 percent to 4.53 percent.
- Future P/E: Has increased to 16.13x, up from 15.32x previously.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.